Broker Check

Why DEI Data May Contain Lies

April 01, 2024

Political correctness has certainly become a big part of our culture in recent years, particularly in academia, politics and corporate America.  Some of the largest investment managers in the world, such as BlackRock, State Street and Vanguard have made DEI (Diversity, Equity and Inclusion, a term used to describe policies and programs that promote the representation and participation of different groups of individuals) and ESG (Environmental, Social and Governance refers to a collection of corporate performance evaluation criteria) major priority in their strategies and have even become driving forces for enabling these concepts in the corporate world.  Yet do concepts like DEI and ESG really have validity in spite of their popularity?  

Enter Strive Asset Management, a company that was co-created in 2022 by presidential candidate Vivek Ramaswamy specifically to prioritize the appropriate investment opportunities over political correctness for their investors.  Recently, Strive conducted a webinar on the subject of DEI.  It features Chris Nicholson, JD, PhD, Senior VP and Head of Research at Strive and Alex Edmans, PhD, Professor of Finance at London Business School and author of the upcoming book "May Contain Lies: How Stories, Statistics, and Studies Exploit Our Biases - And What We Can Do About It".  So without further ado, enjoy the webinar and consider how this issue might be impacting you in your own life, financial and otherwise.

Why DEI Data May Contain Lies (4500125) (on24.com)

The opinions expressed in this material do not necessarily reflect the views of LPL Financial.

Environmental Social Governance (ESG) has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.