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The SEC recently proposed a regulation that would require companies "to include certain climate-related disclosures in their registration statements and periodic reports, including information about climate-related risks that are reasonably likely to have a material impact on their business, results of operations, or financial condition." Clearly focused on ESG from a bottom line perspective.“There’s a sort of obscure language that ESG raters use to talk about this stuff,” says Thomas Lyon, director of the Erb Institute for Global Sustainable Enterprise at the University of Michigan’s Ross School of Business. “They like to talk about 'materiality,’ which means, is this particular thing going to have a material impact on our bottom line? It’s not asking the question, ‘Will it have a material impact on the planet, or on people?’ It’s all about the bottom line.” For example, MSCI, one of the largest companies that rates companies for ESG, says on its website that its ratings are “not a general measure of corporate ‘goodness'” or even “a synonym for sustainable investing”; instead they “provide a window into one facet of risk to financial performance.”
Sadly, but not surprisingly, higher rents are hitting households with limited incomes the hardest. But, from an investment perspective, high demand for available rentals suggests there may continue to be opportunities for some single family rental investments. (A little over 10% of the high yield sleeve of my portfolio is invested in residential rental reits.)The U.S. doesn't have enough homes to meet demand — even now, as fewer people want to buy in the face of rising mortgage rates...Rising mortgage rates could actually put more pressure on the rental market: As first-time buyers put off a new purchase, they'll continue to rely on renting.
*****Gotcha.TCHP. Did you see the P/E on that bugger??????? 31+
Owning things like Microsoft, Apple, META and Tesla will cause a high P/E. I compared TCHP to a RYT, a popular Invesco TechETF, and the P/E is similar. Of course DCA’ng in gradually during a falling equity market is different than buying all at once. And, since the fund doesn’t disclose holdings for 15 days, those P/Es have come down some.
BTW, I wouldn’t recommend TCHP or anything else I might own or contemplate to anyone else.
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