1 big thing: The promise of ethical investing

Axios, a news service that has an investing newsletter, created an article on the trends with ethical investing, oil prices and car sharing.

Ethical Investing's Promise: Investing in companies that rank highly on moral criteria could yield strong financial returns. Just Capital surveys Americans to rank companies based on values like fair worker treatment and job creation, rather than environmental concerns alone. Companies such as Hewlett-Packard Enterprise and Bank of America, which ranked highly, saw a 131% return between 2018 and 2024, slightly outperforming the S&P 500. A long/short investment strategy — buying top-ranked companies and shorting the lowest-ranked ones — could offer attractive risk-adjusted returns.

Why Oil Prices Are Dropping: Oil prices are falling due to weak economic data from China, improved Libyan oil production, and the end of the U.S. summer driving season. This decline could push gasoline prices below $3 per gallon, offering some political relief during inflation concerns in the U.S.

Turo's Strategy for Growth: Turo, a car-sharing platform similar to Airbnb for cars, is partnering with Uber to grow its business. The car-sharing industry has struggled, but Turo hopes the partnership will help it expand. Starting in 2025, Turo will list cars on Uber Rent in several countries, aiming to capture a larger share of the market despite past failures by competitors.

For more information see Felix Salmon and Emily Peck "1 big thing: The promise of ethical investing" Axiosmarkets.com, September 5, 2024.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.