At the Money: Woke Investing vs. Values-Based Investing

This podcast episode explores the concept of values-based investing, an approach that seeks to align investment decisions with personal beliefs and values. It involves both advocating for positive change ("waving banners") and making investments that are consistent with those values ("pulling clouds"). While socially responsible investing (SRI) specifically focuses on creating social change, values-based investing emphasizes the connection between personal beliefs and investment choices. The episode also touches on the performance of ESG (environmental, social, and governance) investments, highlighting the lack of consensus in research findings and the political pushback faced by ESG investing. Financial advisors are encouraged to understand and respect client preferences for values-based investing.