Changing the Game of Finance
By Hazel Henderson | October 26, 2009
Marking the 20th Anniversary of SRI in the Rockies offers more than an opportunity to review the hard-won progress of investors to prove that socially responsible investing is viable and now clearly out-performs traditional mainstream investing. Since the credit crises of 2008–2009, we can now assert with confidence that investing for long-term sustainability and taking environmental, social, and governance factors (ESG) as material to asset valuation could have actually helped avert these crises. We investors are now winning the paradigm battle and cite the evidence to show that the Efficient Market Hypothesis (EMH) is bunk and by the same token show that the Modern Portfolio Theory (MPT), the Capital Asset Pricing Model (CAPM) and, yes, even the sacred tenets of the "rational investor" and the Black-Scholes Merton Options Pricing Model will soon be part of history.
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