“The first rule of sustainable investing is that you never talk about sustainable investing,” financial and economics Author Andrew Moran says, analyzing the apparent bubble-burst of the environmental, social and governance (ESG) investment market – which he predicted back in 2021.

“Wall Street might be adopting the Fight Club rule: The first rule of sustainable investing is that you never talk about sustainable investing,” the LibertyNation.com economics editor writes in his commentary, “The Death of ESG Funds and Small Banks – Swamponomics.”

As more and more attention is drawn to ESG, billions of dollars are being pulled out of ESG investments, Moran writes, quoting a Bloomberg exchange fund editor’s analysis of the “ongoing reversal in flows, which tends to go hand in hand with narrative.”

In Moran’s October 2021 video, “The ESG Investment Bubble,” he predicted that the ESG fund investment market would be doomed by Americans’ increasing awareness that their retirement account and pension fund money was not being invested to maximize profit, but to advance ESG ideology:

“[T]he bubble in ESG funds may have burst a while ago. But now that they have received mainstream attention from conservatives and libertarians, a funeral could soon be scheduled.”

ESG investments may be endangering financial markets and distorting the ESG industry because they’re being made without “conventional investment discipline, rigor and diligence,” Moran explains in the video.

What’s more, personal finances and real-world realities, such as rising energy costs, could prompt more Americans to instruct their fund managers to pull money out of ESG, in favor of more profitable investments, he predicts:

“It is more than likely that consumers would abandon their ESG pursuits to save a few bucks, stay warm, and ensure the automobile has enough fuel.”

Lawmakers’ increasing awareness of the potential harm to retirement savings of ESG investments may also be a cause of the outflow of capital.

In December, for example, one of the leading investment fund managers, Vanguard, chose to pull out of the Net Zero Asset Managers coalition, rather than face the scrutiny of Texas legislators.

The coalition requires a commitment to cut carbon emissions of those in its portfolio to net zero by 2050. By exiting the group, Vanguard was excused from a Texas Senate committee hearing, where it would have had to answer questions about how its investments could be putting ESG ideology over their clients’ best financial interests.

Watch Moran's October 2021 video: