A Socially Responsible Fund To Consider ...

Today, I am going to write about a socially responsible fund you might want to consider parking some of your cash in. I think it's a cool way to potentially make some money without generating much negative karma.

But before I get to that, I want to point out today's Daily Dose. Today's featured artist is Bruce Springsteen. I remember the first time I listened to one of his albums ... it was at my home in Maine, and I borrowed my sister's copy of Darkness on the Edge of Town.

I was moved by the passion in his voice. He means what he sings. There's no faking it. He rocks. He's one of my heroes. I'm working on his song The River and plan on giving it a go at an open mic within the next couple of weeks. I'll let you know how it goes.

Now, let's get stockin'!

While trolling around my Bloomberg terminal this morning, looking for something interesting to write about, I stumbled upon the Valic II Socially Responsible Fund (VCSRX).

With all the greed and corporate irresponsibility out there, I sometimes grow weary of writing about some of the companies and trading vehicles. But when I found this fund, I had a better feeling and decided to introduce it to my readers.

The VCSRX, incorporated in the United States, is an open-ended fund that invests 80% of its net assets in companies that do not invest in nuclear energy, military weapons, alcohol, tobacco or gambling. I think that rocks!

Some of the companies in the top 10 holdings of the fund include Citigroup, Inc., Microsoft Corp., Bank of America Corp. and JPMorgan Chase Co. Sure, we could draw a philosophical line tieing these companies to less-than-altruistic intentions. But at least they are NOT directly involved in blowing people up, rotting people's livers, destroying people's lungs, and filling people with the false hope of quick wealth.

I'm not suggesting you buy into this fund. I just wanted to point it out for your consideration.

Have a rockin' day!

There's No Need To Fear, The U.S. Economy Hasn't Been Eaten By The Bear

Here we go for another week. I hope you had a great weekend. I did. Not only did I get to spend time with my son (we went to the movies to see Underdog), but I also got to play lots of guitar.

On Friday night, I plugged in my Les Paul and practiced Head On by the Jesus and Mary Chain. I love that song; the Pixies do a great cover version. I also worked on Bruce Springsteen's The River, another great song.

Now it's back to the grind, and I am here at my desk trying to make sense of what's going on in the markets.

Here's what I think:

There are a lot of “Chicken Little” pundits claiming the U.S. economy is on the verge of catastrophe and that other major world economies are the best place to park your investment cash. What a crock!

They start by pointing to the mortgage meltdown that’s created a credit crunch that’s sending ripples throughout the markets. They also like to cite the lame performance of the U.S. dollar against other major world currencies.

I could go on and on about the fundamental problems in the U.S. economy and make a convincing argument that the sky of falling: massive debt, huge foreign trade imbalance, government spending gone wild.

The market is jittery and it should be. But it’s not the end of the world, and I am not putting nails in the U.S. economy’s coffin. What’s going on now is part of a natural correction in the market that probably won’t last too long.

Just take a look at the following weekly chart of the S&P 500. If you look at the chart and try to clear your head of all the rubbish you hear and read, the market uptrend remains intact. In fact, the S&P could lose another 73 points before I would start to worry.



I’m not saying it’s time to start buying up stocks or selling everything irrationally. What I am saying is it’s premature to be calling the beginning of a bear market, and it’s even more premature to claim that foreign markets are impervious to what happens in the U.S. markets.

Rock on!