This week on the show we're talking about the unwind of the ESG trade that benefited so much from the outperformance in Growth stocks.
If that's over and the rotation into Value is real (and we think it is) then the "Short ESG" trade is what we're interested in.
Rather than buying the cleanest companies saving the world, we would rather own the grossest companies hurting the environment the most: Energy, Industrials, Materials, etc.
The ESG trade is cute. It's probably easy to convince people that they're doing something "good" by owning these companies. BUT, if you're in the market for any other reason than to make money, you are very very confused.
Fortunately for investors, there are plenty of those people who would rather make donations to the market instead of extracting that money, which should be the goal.
Our job is to take it from them with a smile. In this week's video we break it down and identify which areas we want to own and which ones we want to ignore.
For the slides please email [email protected] Password: "Virtue Signaling"