NextGen: Talkin’ ‘Bout My Generation

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You made it to Thursday!

It’s been a week of financial news full of things we’d rather ignore but know we shouldn’t. At the top of the 😬 list: the latest consumer-price index (CPI) data that came out this morning. Core inflation (which represents CPI minus food and energy) reached a four-decade high in September. Overall, inflation rose 8.2% - faster than expected, leading many to predict that the Fed would continue its inflation fighting campaign.

Then there’s the International Monetary Fund (IMF)’s latest World Economic Outlook report, which is almost as dark as Stranger Things season four (which, BTW, we predict will inspire many Halloween costumes this year). The IMF says 2023 will “feel like a recession” for many people and projects global growth will slow to 2.7% next year. Ouch.

And we definitely understand why some would rather keep their heads in the sand than examine this week’s stock charts. The Nasdaq hit its lowest level since July 2020, and the S&P and Dow haven’t fared much better. It’s all contributing to an anxious earnings season, which kicked off this week and we’ll be watching closely in the coming days.

So we decided to take a break from doom scrolling and remind ourselves why many experts say it’s better to ride out downturns and focus on the long term. As a result of that well-spent time, we’ve got a brand-spanking new resource for you: FWIW’s Guide to the Rewards of Long-Term Investing. We dove into the research to see what happens when you stay invested through market ups and downs, and also how the long-term approach may support the goals of values-aligned investors. Check it out and see if you can find our Easter egg for Green Day fans.

But first, don’t miss our deep dive on demographic trends to consider in your investment strategies. And we also found a few bits of good news that were definitely worth sharing. Enjoy!

News you can use

• Two US banks, Amalgamated Bank and Citi, made the Top 10 in a new sustainability ranking that looks at sources of income. Financial institutions were ranked by the percentage of revenues they earn through sustainable lending, underwriting and investments. Only those committed to achieving net-zero portfolios by 2050 and the Task Force on Climate-Related Financial Disclosures framework qualified. A Canadian credit union, Vancity, holds the No. 1 spot, and you can see the rest of the list from Corporate Knights here. We also want to give props to the credit unions in Puerto Rico helping after Hurricane Fiona.
  
• Impact investing keeps growing! The size of the worldwide impact investing market has grown to $1.164 trillion, marking the first time estimates have topped the $1 trillion mark. Wondering how Impact Investing is different from ESG, Socially Responsible Investing and Sustainable Investing? We’ve got you covered.
  
• We got our first glimpse of Polestar’s new electric SUV and Tesla started producing its much-awaited semi recently. The all-electric truck that can travel 500 miles on a single charge is being manufactured in Nevada. As of mid-September, companies have announced investments over $13 billion in domestic EV manufacturing and $24 billion in batteries, according to the White House. And some insiders say this is just the start of a shift to EV and battery manufacturing onshoring. Protocol has a running list of who’s investing in what and where.