Another Nail in the ESG Coffin

Posted by mshupe 1 year, 2 months ago to Economics
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"For those cases, when knowledge is incomplete and events are distributed randomly, probability analysis becomes a useful procedure. To that end, the integration of historical data, financial resources, cash flow objectives, and analytical software is an objective way for baseball managers and individual investors to make strategy decisions.

On the other hand, macroeconomic forecasts, market predictions, ESG scores, fund rankings, stock picking, and arbitrary benchmarks are the preferred service model for traditional asset managers."

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  • Posted by j_IR1776wg 1 year, 2 months ago
    In your previous post, Chess and Economics, you nailed the essence of the decline and fall of Western Civilization when you wrote
    “…To repeat “nature, to be commanded, must be obeyed,” including man’s nature as a rational being with free will. Barring that, emotional whims take over, cause is divorced from effect, and we get the morality of good intentions…”

    I would suggest rewriting that sentence as “People having more faith in their thoughts than in the evidence of their senses.” This denial of Reason that I’ve heard called Aggressive Ignorance.

    Further examples; “…Nullifying the law of causality, those at the top are frequently insulated from the consequences of their actions...” The refusal to accept responsibility for one’s actions.

    The two professors referred to made logical errors that, if made, by a first-year student in logic 50 years ago would have resulted in a grade of F.

    I read in the news that a religious revival called the Asbury Revival is occurring. I would love to see an Aristotle Logic Revival sweep America and the world. I just don’t know how to start one. Maybe you young people could give it a try.
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    • Posted by 1 year, 2 months ago
      Thank you for the suggestions. That's exactly the kind of feedback I was hoping for when posting the essay to this group. However, I doubt many participants read something this long, understandably, and are only interested in politics. Also, an Aristotle Revival is a great idea; the drawback is it means active thinking. Religion offers the perk of emotional reactions. The courage of mental focus vs. the cowardice of groupthink. What are the two logical errors?
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  • Posted by 1 year, 2 months ago
    "In Modern Portfolio Theory, there are three potential assumption errors inherent to the capital asset pricing models — median return, standard deviation, and correlation. Furthermore, man-made complexity designed to protect entrenched bureaucracies only serves to add more of them. As Moneyball proved, honesty, productiveness, free markets, and profits are the socially responsible way to invest."
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