Responding to Feedback
We always enjoy receiving feedback from my client letters, both positive and negative. I believe that either way, the feedback begins a conversation and can improve communication and understanding, clarify our beliefs and question our assumptions.
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Last week, a client questioned whether or not biotechnology should not fall under the umbrella of sustainable investing.
Sustainable, responsible and impact investing (SRI) is not just about the environment. Sustainable investing is holistic. It is about integrating science, technology, biotechnology, alternative energy, green real estate, batteries, water filtration and efficiency, green transportation, community and sustainable finance, recycling and circular economy, and natural and organic products and services into our investing strategy. All of these areas and more are necessary for us to move, as our colleagues at Green Alpha Advisors say, into the ‘Next Economy.’
From day one, sixteen years ago, Earth Equity Advisors has invested our clients all of these opportunities whenever feasible. Investing sustainably is about being good for the planet and good for our investment portfolios. We have never wavered in our principles or in our fiduciary duty to always do what is in our clients’ best interests.
We are grateful that all of you have chosen this journey with us to help make the world a better and healthier place. Please continue to provide feedback.
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On to business…
Markets continued to be volatile over the past week, mostly related to three issues: vaccine development, re-opening the economy and US-China relations. Biotech, Moderna who is working on a cutting-edge mRNA vaccine solution came out with positive results in Phase I trials. The market popped with this news. Unfortunately, Phase I trials are very preliminary and are no guarantee that the final drug will be effective. At the same time, many companies are working on both treatment and vaccine solutions. We added a small allocation of the ARK Genomic Revolution fund to our mutual fund portfolios on May 1 and it has been the top performer over that time.
Secondly, this past Memorial Day weekend saw people coming out of their houses and gathering...many without masks or other PPE. The market likes the opportunity for the economy to pick back up again, but how long will it last if those unprotected folks get sick in 2-3 weeks?
Finally, US-China relations have been strained because of the pandemic and are only getting worse. This, of course, is only exacerbated by the trade war that was going on previously. No one is quite sure where this situation will end up.
So, with all of this uncertainty which leads to volatility, we simply continue to maintain our capital preservation strategy in all of our diversified mutual fund portfolios. We have no changes planned for the near future.
Next week on June 1, the Green Sage Sustainability Portfolio will have its biannual rebalance and reconstitution. The portfolio has been finalized and we're now waiting to make the trades.
Please let us know if you have any questions or concerns. Thanks again for your business, friendship and introductions! We are grateful!
My Best,
Peter Krull
CEO & Director of Investments
Earth Equity Advisors, LLC
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