As I sit down to write this blog entry on November 7th, news outlets are widely reporting the Biden victory. As the President-elect of the United States of America, Joseph R. Biden Jr. will assume a host of major issues when power is transferred to him in January 2021.
Among the top issues that will receive attention is climate change. After four years of the systematic dismantling of Climate Change policy, Paris accord withdrawal, and the dismissal of scientific fact, the 46th President and his Vice-President elect Kamala Harris are expected to see this as a cornerstone of economic growth going forward. With the Biden "Green Deal" priced in excess of $2T USD, a large swath of the US economy is expected to benefit from the upgrade to infrastructure, smart electrification of the grid, renewable energy, water resource management and agricultural investment (among other things). Bolstered by the re-establishment of regulations that were either weakened or removed during President Trump's tenure, the environment and the worker is the net benefactor with these latest developments.
Where does that leave you as the investor looking to pivot your investments for the next four years and beyond? As a certified responsible investment advisor, the conviction I hold in guiding my clients through portfolio investments that should bear fruit in the coming years has never been stronger. While at some points during the past week the outcome of the US election seemed unclear, and the electoral path "to 270" for Joe Biden seemed hampered by slow ballot counts, winning in several pivotal states seems to have removed all doubt. Regardless of one's personal politics, I believe we can all agree that despite the ravages of COVID-19, economic distress, and the challenges voters faced in exercising their democratic right, the record turnout proved that democracy works. The reconciliation that will now take place and the renewed focus on rebuilding the US economy beginning by restoring the health of the American population and its economy.
Therefore, there is no better time to revisit your own investment strategy. This year has been an indictment on the fossil fuel industry as one that is in decline, companies that price gouge and take workers' safety for granted, not to mention the importance of evidence-based decision making. Investing for the long-term means participating in secular trends that will play out over decades.
In conversation with clients, and people that are not yet clients, I devote a considerable amount of time talking about time. The importance of letting the power of compounding work its magic, and the significance of not simply passively accepting the returns of a portfolio that does not accurately reflect your own values, or incorporate themes that are more than likely to offer an outsized return over...time.
As a responsible investment advisor, my firm belief is that this is an opportunity to have you, the investor, participate in this sea-change we are about to witness. To seek out a personalized wealth management experience that no off-the-shelf 'traditional' portfolio can offer by bringing back the human element is to feel empowered as a participant in the process. Targeting your investments to particular themes, adjusting for a growth or an income requirement, and looking to achieve tax efficiencies with the various types of accounts at your disposal. This is an exciting time to be an investor looking to invest in change by changing the way they are invested. There is no stronger call to action that the facts staring us all in the face.
The opportunity is now. Join me today in this journey. Be a part of the change we are all witnessing and do well by doing good.