Australia is burning, the stock markets are soaring (and we're fighting for it)!

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Australia is burning, the stock markets are soaring (and we're fighting for it)!




by Christophe » 06/01/20, 18:03

Since I didn't know if I should put it here Climate-change co2 / latest-figures-of-warming-climate-t13878.html or there economy-finance / the-greater-crash-Financial-of-all-the-history-will-be-produced-by-2019-t16137.html hey bin i put it here! : Mrgreen:

This article shows, if it were still necessary, the total disinterest of (high) finance for the preservation of the environment and respect for life * ... and the real world in a more global way! :? :? :?

* but we all know the famous "Buy at the sound of the cannon" ... which proves that (human) life does not count for finance so how could animal life or the climate count? This could also explain, perhaps, the current contempt of the French government for its people ... but that's another story!

Australia is burning and the stock markets are soaring: the climate is therefore priceless?

Between the stock market indices and the real world, a chasm is widening. This is striking when we look at the cases of Australia and France. In the first case, the country is going up in smoke, but the national index is breaking records. At antipodes, the longest social crisis in history does not prevent the CAC 40 from flirting with 6000 points.


The CAC 40 ended the year with a tuition of 6000 points against 4730 at the end of 2018. The ASX 200, the flagship index of the Australian stock exchange, has known the same fate. It closed at 6 points, 684 points more than at the end of 1. These records could suggest that all is well, at least on the financial planet. On planet Earth, it's more complicated! France is blocked by transport strikes and Australia burns.

Australian fires intensify greenhouse gas emissions even more and lead us straight to much higher global warming than the Paris Agreement provides for. They are ravaging a country that nevertheless helped block COP 25 in December. These environmental and social crises do not seem to have a hold on the stock exchanges for which they nevertheless represent a sword of Damocles.

In 2015, the financial sector adopted climate policies convinced that climate change was a systemic risk for global financial stability. At that time, the indices that select the largest global companies seemed to be full of "stranded assets", depreciable assets, because incompatible with the Paris Agreement: fossil fuels, gasoline cars, textiles in overproduction. Four years later, stock market records may suggest that this analysis is no longer relevant. Total is still the third capitalization of the CAC 40, behind LVMH and L'Oréal. As for the ASX, it has many mining and oil stocks and an airline.

Clues at +4 degrees

Their spectacular increases are a bit of a sham that sanctifies index management and confirms the decorrelation between stock market mechanisms and the economic fundamentals of the companies that make them up! The growing importance of this management method disrupts the ability of stock market variations to reflect the real value of listed companies, more particularly on an environmental and social level. Index management mechanically inflates each index and attracts ever larger volumes of outstandings without the investor making an active choice of this or that company.

He thus invests blindfolded in an economic world of safe values ​​on a financial level. On the other hand, from a climatic point of view, they tend to worsen the situation. The few studies on the subject estimate that the major benchmarks are on global warming trajectories that vary between 3 and 4 degrees.

The success of Vanguard and BlackRock

The High Level Expert Group on Sustainable Finance (HLEG), created by the European Commission in 2017, hoped that these indices could calculate and publish their climate "temperature". This would have made it possible to associate their volume of points with the funded warming figure: 2, 3, 4 degrees, or even more. But the proposal was not accepted.

The increase in stock volumes first benefits index management giants like Vanguard and Blackrock, which rose from $ 4721 billion in assets in the summer of 2015 to nearly $ 7000 billion in assets at the end of 2019. A colossal weight that makes them the reference shareholders of the largest companies on the planet and the ideal players to push them to adopt a low carbon model. But again, the climate is not the priority. The American NGO Majority Action analyzed their voting policies and revealed that they were very rarely in favor of the climate.

In conclusion, the fight against climate change means reconnecting the link between stock market variations and economic and political realities. In Australia as in France, it is worrying that the deep crises experienced by these countries do not affect their stock markets. It is a strong signal of their ability to dance on the deck of the Titanic.

Anne-Catherine Husson-Traore, @AC_HT, Managing Director of Novethic


ps: sorry for the title I could not help the complement: that of Novethic was already very good!

https://www.novethic.fr/actualite/finan ... 48069.html
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Re: Australia is burning, the stock markets are soaring (and we're fighting for it!)




by GuyGadebois » 06/01/20, 18:19

If the stock markets are soaring and gold is at an all-time high, it's because of Trump's bullshit about Iran. Personally, what is happening in Australia undermines my morale even more (which tends to be lower these days) than usual.
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Re: Australia is burning, the stock markets are soaring (and we're fighting for it!)




by Ahmed » 06/01/20, 18:32

I know that some may have been surprised by the soaring stock market in a sluggish economic climate (sorry, could not help myself!) And have sometimes deduced that "things were not going that badly. ".
The article remarked very judiciously;
... and confirms the decorrelation between stock market mechanisms and the economic fundamentals of the companies that make them up!

Without dwelling on the cyclical nature of the phenomenon, this decorrelation between the physical industry and the financial industry is only the translation of the current evolutionary stage which sees the second replacing (quite effectively so far) the first.
However, it is to demonstrate a complete misunderstanding of the situation to hope for this:
In conclusion, the fight against climate change means reconnecting the link between stock market variations and economic and political realities.

At least if we accept to place ourselves from the point of view of economic exponentialism (which is that of the editor of the article, although he obviously believes the opposite ...), because this evolution (decorrelation) is an effective means, once again, of prolonging the existence of the present system. The great illusion of many, including probably this journalist, is the absurdity which consists in wanting to go against this development, while remaining in the same paradigm! : Cheesy:
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Re: Australia is burning, the stock markets are soaring (and we're fighting for it!)




by Christophe » 06/01/20, 18:58

Why do I feel like I am learning nothing new when I read this kind of article?

Maybe because we've already said all this, sometimes years ago, about this forum? Thank you all for that!

At the start of 2018, when I was in my bitcoin period, I had the idea of ​​creating a bitcoin correlated to the "cleanliness" (CO2 and whatnot) of the world * ... but it only remained a idea ... at the time!

Two years later, the world may be ready for this (??? what what am I dreaming ???) ... remains to find the algorithm *!

The purpose of this bitcoin would, of course, be to remove the serious divide between finance and ecology!

* or a region of the world ... to see
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Re: Australia is burning, the stock markets are soaring (and we're fighting for it!)




by GuyGadebois » 06/01/20, 19:01

It is not bitcoin that must be "done", it is another "currency", ecocoin, for example, which would avoid dealing with speculative assholes and other mobsters of the exercise.
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“It is better to mobilize your intelligence on bullshit than to mobilize your bullshit on intelligent things. (J.Rouxel)
"By definition the cause is the product of the effect". (Tryphion)
"360 / 000 / 0,5 is 100 million and not 72 million" (AVC)
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Re: Australia is burning, the stock markets are soaring (and we're fighting for it!)




by Christophe » 06/01/20, 19:37

When I say bitcoin it means cryptocurrency ...

Speculation of a crypto depends on the speculative tools dedicated to it (or not) ...
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Re: Australia is burning, the stock markets are soaring (and we're fighting for it!)




by GuyGadebois » 06/01/20, 19:40

Christophe wrote:When I say bitcoin it means cryptocurrency ...

It's stupid, I read "bitcoin" and understood "bitcoin". : Cheesy:
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“It is better to mobilize your intelligence on bullshit than to mobilize your bullshit on intelligent things. (J.Rouxel)
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