Q1 was “interesting”. More financial madness in 3 months than I’ve seen in 35 years, but at least it was fun. How much more sober and boring might the market become? Deliveroo’s botched IPO suggests Investors ain’t as stupid as we think.
Demand for the EU’s Social Bond deal was strong as ESG funds scramble to find qualifying assets, but just how much ESG is enough? Has ESG got overly Woke?
As vaccine wars hot up and markets worry about interest rates and central bank action, the theme of price distortion continues to unsettle valuations. One aspect of distortion is in the increasing weight being put on ESG metrics – which should be market positive, but look to be vulnerable to Woke-like “doubleplusungood” groupthink, potentially further distorting markets.
Seven factors to understand the market shift that’s roiling markets; bond yields and inflation, distortion, recovery, leverage, tech vs reality, exuberance, and value.
Blain’s Morning Porridge – May 21th 2020: ESG – Now It Matters! “Even the bad guys get to be heroes…