Responsible Investor (June 9)
“Only in finance can a product lose 24% of its value and be celebrated as success. Since traditional benchmarks have lost more than ESG funds since the beginning of the year, ESG is feted by some as a success, a ‘refuge’.” Kudos, however, are not in order. “The rude fact is that, on the whole, ESG risk management frameworks did not prepare us for the inevitability of the pandemic. They did not help investors and banks anticipate the crisis, nor how to navigate it. The pandemic is a failure of mainstream risk management frameworks. Sadly, it is also a failure of ESG risk management frameworks.”
Tags: Banks, Benchmarks, Crisis, ESG funds, Finance, Frameworks, Investors, Pandemic, Refuge, Risk management, Success, Value
NBC News (June 9)
“Stocks soar despite coronavirus and a recession. It’s time for a reality check, and a crash. Psychological factors are making markets poor gauges of the U.S. economy’s strength. We should wrench our eyeballs from the ticker tape before it’s too late.”
Tags: Coronavirus, Crash, Economy, Markets, Psychological, Reality check, Recession, Stocks, U.S.
