Investing for Good

This is a brief post describing the basics of impact investing. In it, I will discuss the ways in which you can practice it as well as the social, ethical, and financial benefits of this particular investment strategy. Enjoy!

A few days ago, The Dynalect Team published a report on the clean water industry. In it, we recommended several stocks and ETFs that we believed to be the best equipped to benefit from an increased in demand for access to clean water. While all of our recommended securities were in some way related to the water purification industry, some of them, like Consolidated Water Company (NASDAQ: CWCO), which desalinates saltwater in several South American and Caribbean countries, are directly involved in providing potable water to people where there is insufficient access to clean drinking water.

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How to Profit From “A Random Walk Down Wall Street”

Last week, I wrote about several market theories: the greater fool theory, the prospect (loss-aversion) theory, and the efficient market hypothesis. This week, I’ll be discussing just one theory – the random walk theory. Because it’s so consequential, and because it proposed such a large separation from ever so popular technical analysis, this theory has been hotly debated since it initially became prevalent in the 1970s.

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Don’t be the Greater Fool: When Investing Gets Theoretical

Go online, turn on the TV, or if you’re real old-school, open a newspaper. Either way, when you go the financials section you’re bound to see the same thing every time: people trying to predict the stock market. Now, of course people are going to try to predict the market; there’s $5.1 trillion traded on the foreign exchange market every day, and billions of dollars in profits to be made – if you can just predict correctly.

You don’t have to look far to see that copious amounts of money are spent on attempting to do exactly that – correctly predicting where the stock market is headed. Hedge funds, banks, news sources, fundamental/technical analysts, and many others pour countless resources into predicting the timing and nature of shifts in the market, but to what extent are they successful?

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Psyched Out: How Our Subconscious Can Affect Investment Decisions

Most people (myself included), go about their days doing the things they do and making the decisions make without being fully aware of the role our subconscious plays in determining our behavior. Despite this, decades of psychological research have, and continue to confirm that our subconscious mind is largely responsible for much of our behavior.

In this article, I’m going to talk about a very well-documented phenomenon within psychological research: post-decision dissonance. If you’ve ever had to make a difficult decision, you’ve probably experienced the effects of this psychological occurrence. I’ll break it down for you.

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What We Take for Granted: The Future of Clean Water

The water crisis in Flint, Michigan was a disaster. For months on end, residents of the city did not have access to drinkable water. This derailed the infrastructure of the city and called for the mass importation of bottled water along with the medical care for everyone afflicted. Additionally, the lead in the water affected nearly 8,000 children, and the entire crisis is expected to cost the city almost $400 million.

Although this event was unique because lead was the contaminant, it still provides a window into what happens when a city loses access to clean water for months on end.

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