Shariah and subprime
Everyone on CAPS, by now, is aware of the subprime debacle and its fallout. Speculating and thumbing on mortgage lenders, hedge-fund holding I-banks, homebuilders, home furnishers, and other corporations that even think about homes has become the order of the day/week/year.
And no one is safe from the subprime debacle. Right?
What if I told you that a version of the S+P 500 index existed that was completely insulated from the interest-bearing credit markets? And as a side benefit it eliminated socially irresponsible stocks such as those dealing in the sale or trade of tobacco, alcohol, or pork?
Uh, yeah, pork. Ok, so maybe bacon is a net social good; but this index isn't tracking it.
That's right - or maybe you already guessed from this post's title - it's the MSCI / S+P Shariah 500 index!
Further reading: http://en.wikipedia.org/wiki/Islamic_banking
Two things I haven't found are a way to track the index in real time and a way to buy stock in a fund that tracks the index. I'd really like to know how they fared over the last couple of months.
What about you, Fool™? Would you buy stock - in Shariamerica?