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Investing in Arms Production Puts More Than Your Portfolio at Risk

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Invest by the Sword, Live by the Sword…

“The arms race is an utterly treacherous trap for humanity, and one which injures the poor to an intolerable degree.” (Gaudium et Spes, n.81) …Avoid investment in firms primarily engaged in military weapons production or the development of weapons inconsistent with Catholic teaching on war: biological and chemical weapons, arms designed or regarded as first-strike nuclear weapons, indiscriminate weapons of mass destruction, etc. – USCCB Investing Guidelines

The potential benefits to investing in arms producers are clear. There’s no end to global conflict and weapons companies routinely post very dependable returns. No investment opportunity is entirely safe, even from a financial standpoint. Government contracts fall through, regimes are toppled and even defense budgets get cut.

More importantly, though, every investment in arms production is an investment in companies dedicated to producing better, more efficient ways of killing human beings.

Catholics are called by Jesus to turn the other cheek and forgive our enemies. While this does not mean we cannot defend ourselves, there is a difference between owning a weapon for personal self defense and the mass production of advanced weapon systems designed to kill millions. It is important to note that the USCCB equates the moral implications of investing in weapons of mass destruction with that of abortion.

Serious Catholic Investors Must Stay Clear of Immoral Weapons Production

Investing in your future must not be to the detriment of society as a whole. Investing in the production and proliferation of weapons systems will never produce a better world, it only serves to escalate the cycle of conflict. To promote peace, Catholic investors must avoid funding the endless progression of weapons systems.

Not only does it promote a culture of violence, massive national expenditures on weapons development have a real social cost.

A common exercise in basic economics guns vs butter. While it is used illustrate competing production capabilities, it is readily applicable to the real world. Every dollar governments spend on defense is a dollar they do not spend on infrastructure or other important services. Ultimately, by investing in the production of weapons, we are losing real benefits in the long-term. It’s not just an economics joke that some goods are actually classified as “bads.”

Avoid Investing in Weapons Companies with Catholic Investments

Because weapons manufacturers often report solid gains, they are found in many investment products. Mutual funds often have an arms developer in them and for money-first investors, it’s hard not to invest in them. But, as Catholics, we know we cannot support such companies.

Thorough screens filter out arms producers, letting Catholics invest with confidence.

Our firm has created investment portfolios that are entirely in accord with the USCCB guidelines. To do this, we pass all companies through filters that remove the bad actors Catholics cannot support. Periodic updates to the screens and constant vigilance for changes in the corporate landscape keep our portfolios in line with Catholic teachings.

Contact our financial advisors for a free consultation on avoiding investing in weapons manufacturers.

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