Published on 9/12/2022
GOLD = Easily passed C3 Moral Screening Tests.
PURPLE = Barely Passed C3 Moral Screening Tests (Essentially Neutral).
RED = Failed C3 Moral Screening Tests.
We have three stocks in this week’s report as well as two bond ETFs. Before we get into the weeds of these assets lets go over some terms to make sure we know the lingo.
Government Bond – A debt security (Investable asset) issued by a government to support government operations. Government bonds are sometimes known as Sovereign Debt.
Bond ETF – Bonds have various holding periods and strategies and a Bond ETF is just an ETF that holds a bunch of different Bonds just like a stock ETF holds a bunch of different stocks.
Bonds = Low Risk = Low Interest Rates. Bonds are considered safe and the ones by the US Treasury are considered the safest investments in the world but they usually produce a low ROI.
ETFs are not something C3 holds in high regard given their nature of holding a bunch of different things that are bound to be doing some ill to society. C3 does not like the idea of passive investing and not knowing what you are invested in because these things make it very hard to be ethical investors for Christ, and ETFs are one of the poster children of passive investing and not knowing what you are invested in.
C3 believes that Bonds are an ethical investment depending on the country you live in and the intention behind the investment. As always, C3 is not a fan of just investing in something to simply gain a good return. However, good returns are not in of themselves bad and Bonds can be quality long-term assets.
One of our favorite YT influencers, Joseph Hogue, has made a great video about the three Bond ETFs below. Mr. Hogue does not evaluate ethics when it comes to investing but his financial knowledge is vast and usually accurate. Government bonds have been popping up on our radar for sometime which is to be expected during tough economic times given their perceived safety. We were just waiting for someone like Mr. Hogue to make an explainer video on some Bond related assets that was up to snuff. We encourage everyone to review the information below and to check out the video linked above.
Nvidia (NVDA) – The multimedia software company is always popping up on our radar and it just recently hit a 52-week low which has a lot of analysts thinking that now is the time to buy. NVDA always gets a purple rating from C3 because it passes our moral screening tests by not turning up any red flags, but the nature of its business is a heated debate on whether it is actually for the common good. On one hand the Metaverse will rely on such a company as NVDA, but on the other hand NVDA helps produce a lot of ‘great’ technology.
APA Corp (APA) –APA Corporation is the holding company for Apache Corporation, an American company engaged in hydrocarbon, oil, and natural gas exploration, refinement, and development. It is organized in Delaware but headquartered in Houston, Texas. A very health buy rating for APA on most trading outlets has it hitting our radar this week and for those of you have been paying attention, you know why! Oil, Gas and Energy are the hot topics these days. APA does nothing terrible from an ethical standpoint they are pretty run of the mill and do not participate in a lot of extracurriculars. They boast a completely neutral rating from C3 partner www.2ndvote.com.
EQT Corp (EQT) – Remote third party Abortion Donations, YWCA supporter (Left Wing Organization), EQT Corporation is an integrated energy company with emphasis on Appalachian area natural-gas supply, transmission, and distribution. The Company, through its subsidiaries, offer natural gas products to wholesale and retail customers. EQT is not the worst but there are better ethical alternatives out there for the Christian investor in the Oil and Gas space. Just see this past post by C3 and the pick above.
iShares TIPS Bond ETF (TIP) – Market-Value-Weighted index of US Treasury securities that are inflation protected (Take that for what its worth) and have at least one year until maturity.
Global X Super Income (SPFF) – Us and Canada issued Bonds that are the 50 highest yielding preferred securities.
Government Bond Ethics Summarized.
The two above Bond ETFs are all seemingly solid picks for a long-term portfolio but the big ethical question is what does the government use bond revenue on? How does the government use the monies from Bonds? Is it on things we need like infrastructure, appropriate national defense, and other necessary government functions? Or is it used to fund things like the new pro-LGBTQ+ Q-Chat on the CDC website (link takes you to an article by the Epoch Times, not the CDC website) that is designed to help kids go behind their parents back and participate in sexual conversations? These questions are difficult to answer because the truths are buried under a mountain of bureaucracy and awful government websites. The ethics idea behind US government bond investing is that if you live in the US and believe that the US stands for Freedom and is essentially a Christian Nation then you would want the US to excel in many different aspects. Therefore, helping the US economically by investing into Bonds is supporting the common good. However, the way you vote plays a factor in this. If you are voting for pro-life, pro-constitution, and pro-religious liberty Politian’s then supporting the government is something we should be doing to a certain extent. If you are voting for the opposite of these things and actively working against them then buying bonds and supporting the economic functions of the government may not be something we should be a part of. The ethics behind anything to do with government functions is a complex web and it would take books to dive deep into the nuance of it all. This short blog post just will not do, but if anyone would like us to go more into depth into the ethics behind government bond investing then please let us know!!
Please remember to spend time in prayer with our Lord and Savior Jesus Christ before making any major financial decisions. Speaking with friends and family is always great too.
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