Investing in the Dark Corner of the Market

Most people have a black and white view of the market. They make choices based on very broad ideas of “good investments” and “bad investments.” Good investments provide a positive return with little to no hassle. Bad investments take your money and leave you two steps back from where you started. 

This perspective might be enough for some investors, but we believe there is one area of the market that is far too often overlooked. We sometimes refer to this as the “dark corner of the market.”

This sounds very ominous, so keep reading to find out how you could be investing in this dark corner without realizing it.

Do you need guidance in your financial strategy? Schedule a consultation today! 

What is the Dark Corner of the Market?

Some companies look great on the outside. They are growing fast, providing significant returns, and providing a product or service that generates a lot of talk. However, what you might not see is that these companies have financial ties to the gambling and tobacco industry. 

When you invest in these companies, you are indirectly profiting from these industries’ success. This can be a startling truth to learn when you had no idea. Most portfolios and investment plans don’t provide a peek behind the curtain, so you’re left with no choice but to invest, cross your fingers, and hope for a positive return. 

But there’s another way to invest. 

The Values-Aligned Market Approach

You don’t have to blindly trust companies with your investments. With a values-aligned approach to the market, you can choose to invest in companies that support fair labor practices, global access to education, environmental sustainability, and the right to life.

A values-based investing strategy allows people to invest in companies that align with what matters most to them without sacrificing returns. Instead of causing harm to the world around them, these companies use their business to meet needs and bless humanity. 

Think about it. What values would you never want to compromise just to make a profit?

See the four characteristics of a good investment here!

How Do We Stay Out of the Dark Corner of the Market?

At OneAscent Wealth, we’ve built our business around the idea of values-based investing, and we have a standard for every portfolio we build. 

Our investment strategists and managers screen over 6,500 companies every quarter to determine which ones make a good investment. We look at each company qualitatively and quantitatively. We ask:

  • Do these companies profit from or engage in industries and activities that go against our core values? 
  • Do these investments provide sustainable profit and positive returns?

We see if the companies are involved in industries or areas that actively exploit the dignity of those in our society, especially the vulnerable. But even the most virtuous company may have a constant history of poor returns, which means they wouldn’t be a good candidate for investment for our clients. 

Check out this blog to learn more about our process for building values-aligned portfolios! 

Investing In the Better Corner of the Market

If you’re not interested in investing in the dark corner of the market, there’s a better solution. 

Your values inspire the way you live. Shouldn’t they inspire the way you invest? Contact us today to learn more about building your portfolio around what matters most to you!

 

 

Past performance may not be representative of future results.  All investments are subject to loss.  Forecasts regarding the market or economy are subject to a wide range of possible outcomes.  The views presented in this market update may prove to be inaccurate for a variety of factors.  These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data.  Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.