Han Dieperink

Not all European regulations are good. Under the Sustainable Finance Disclosure Regulation (SFDR), part of the EU Green Deal, asset managers must disclose information on sustainability. The objective is thus more transparency and openness in this area. However, from the start the directive was used as a means to classify funds.

Index investing is a disruptive innovation from which private investors have fully benefited. They get more returns and at much lower costs. Moreover, academic studies and, of course, the annual surveys by Standard & Poors show time and again that simply trying to beat the market is doomed to failure.

Newton’s second law states that impact equals mass times speed. It is my conviction that sustainable investors have a greater impact than they often think. Not so much because of the speed, but because of the increasing mass. In the financial markets, it is the marginal buyer and the marginal seller who determine the new balance and it is here that sustainable investors give the right push.

The Earth should really be called “water”, because 71 percent of our planet is covered with water. Water in abundance, but only 1 percent of all that water is clean and accessible freshwater. Of that, two-thirds goes to agriculture and other food. The need for water increases with the growing population, a population that is also eating more meat.

Ultimately, the price of oil is determined by supply and demand. What is special about the oil price is that, in theory, there are several equilibrium prices. This is because a large part of the supply is linked to a state budget. Where normally the supply goes down when the oil price goes down, there are countries that in the past pumped more oil to realise the same yield.

Knowing that the final price is determined by the marginal buyer and the marginal seller, identifying these two parties is essential for predicting the oil price.

The fall of Kabul may be the proverbial drop in the ocean with major consequences for the United States, China, Europe and even the world. It reinforces the call for change that may result in a new world order.
 

The IPCC report is widely seen as disturbing and alarming. The urgency is clear. The most important consequence for investors is that it will lead to more inflation. After all, the report’s obvious aim is that more must be done to combat global warming.

The moment the government starts determining what you are allowed to earn as an investor, it is usually wise to be gone. In Europe, there is more regulation than in the United States. In some cases, such as in the financial sector, there has been de facto nationalisation since the Great Financial Crisis. The average bank employee has to deal with more rules than the average civil servant. 

Jay Powell was appointed by Trump. Trump denied Janet Yellen, the previous chair of the Federal Reserve, another term in 2018. Trump preferred to have his own pawn. He did not succeed. Powell and thus the Federal Reserve remained independent. Next year Powell can be replaced, but it will not be easy.

When Tesla’s annual report was released on Monday, it stated that the firm had bought $1.5 billion in bitcoin and that it wants to expand this position. This seems a strange move for an electric car producer, but Elon Musk regularly tweets about bitcoin and the digital currency dogecoin.