Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing
Welcome to our #30 weekly newsletter in 2020.
Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.
Stay in the know.
Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2020 during Covid-19 and beyond.
If you’re short on time, listen to the editorial on audio for a brief overview.
“Our mission is to help women take control of their financial future”
-Jana Hlistova
Photo: Christina @ wocintechchat.com
From The Purse…
Editorial from the Founder
Global liquidity has hit an all-time high due to central banks around the world printing money.
The global stock market has rallied since late March for this reason and despite the damaging impact the pandemic is having on the global economy.
Tensions between the US and China continue which is unnerving investors.
It is not surprising that we are seeing the price of gold and silver go up.
The EU has agreed on a €750bn recovery fund which will provide grants to countries in most need of a Covid recovery.
UK retail sales beat June forecasts and business output hit a 5 year high in July. However consumer confidence has not recovered since the lockdown was lifted as consumers worry about losing their job and continued health risks.
The International Monetary Fund (IMF) is urging swift action by governments to protect women from the Covid-19 economic hit. And the World Economic Forum (WEF) writes about how women can help a green transition.
Read about what the ultra wealthy are doing with their money and how unmarried parents should protect themselves financially.
Shares in UK pharmaceutical company, Synairgen Plc soared 552% after it said that its inhalation product cut the risk of developing the worst symptoms of Covid-19.
In the Have You Seen This? section, read about Emily Kramer, who was VP of Marketing at software start-up Carta, where she helped to bring more diversity and transparency to the cap table. On Tuesday she sued her former employer for unequal pay and other forms of gender discrimination.
We highlight a survey carried out by Pregnant Then Screwed, which said that almost 50% of working mothers were laid off due to lack of childcare during the pandemic.
And we’re tracking Angel City-the new all women’s football team in Los Angeles funded by high-profile investors such as Serena Williams and Natalie Portman. Even Serena’s two-year old daughter is an owner. We like that a lot.
Check out our new podcast interview with Shelley Kuipers who co-founded the financial feminist platform The51. We talk about how she started on her investing journey, why female founders are designing and building the world they want to see, why impact investing is the future and more.
Stay safe, look after yourselves and your loved ones.
I hope you enjoy this week’s newsletter. Until next week,
Jana
The Big Picture
Global markets and economy news, trends and indicators
The Coronavirus Effect:
Global liquidity is the main driver for the stock market rally
Global liquidity (or the easing of funding in global financial markets) has hit a new all-time high at $88.1tn due to central banks printing money and the US dollar weakness:
US/China tension is on the rise
China ordered the US to shut down its consulate in Chengdu.
This is after the US demanded the closure of the Chinese consulate in Houston in order to protect American intellectual property and information of its citizens.
Chinese stocks led losses in the Asia Pacific markets.
Last week, Ray Dalio wrote about the potential of a ‘shooting war’ between the US/China if this ‘tension’ keeps escalating.
EU recovery fund is agreed: €750bn
The EU will raise commonly-issued debt and provide as grants (in the main) to countries most in need of a rebound.
The deal has two elements:
the regular EY budget worth nearly €1.1trn ($1.3tn) over 7 years;
a one-off ‘Next Generation EU’ fund of €750bn to help countries recover from the Covid-19 recession.
US dollar weakened, as gold and silver soar
The US dollar index is close to setting a new 21 month low.
Silver’s rally since March has been up 80%
Gold is up to $1900/oz for the first time since 2011.
Gold and silver is a ‘store of value’ for investors during times of economic uncertainty.
US needs another stimulus package
The reopening of the American economy is stalling.
Business activity is weaker in July than expected.
Politicians might struggle to agree to this before the current deal expires (in 2-3 weeks time).
UK retails sales beat June forecasts & business output hits five-year high in July
13.9% month-on-month rise in UK retail sales last month vs the expected 8%.
For July, the composite PMI reached 57.1 compared to 47.7 in June, which was the strongest pace of growth in 61 months (or just over five years).
(UK) Consumer confidence survey: doubt over V-shaped recovery
Fears of rising redundancies and concerns about health risks of high street shopping, has affected consumer confidence.
Bank of England policymaker Professor Jonathan Haskel argues that demand, not supply, will be the key factor on whether the UK economy rebounds from the slump, or struggles.
Future Focus
Keeping an eye on key predictions, innovations and what’s going to impact the future
IMF urges swift action to protect women from Covid-19 economic hit
The economic impact on women threatens to roll back progress in the last 30 years, widening gender gaps.
The IMF has urged governments around the world to use the full power of their tax and spending toolkit to extend income support to the most vulnerable people, protect employment and provide incentives to balance work and family care responsibilities.
WEF: How women can power the green transition
According to McKinsey & Company, women leaders represent ‘a competitive edge in and after (the) crisis’.
Green-energy transitions can help tackle systemic gender discrimination and enable societies to reap the benefits of a more diverse workforce.
Josef Stiglitz, a Nobel laureate in economics, believes that by investing in a green economy we will recover from the Covid crisis.
Ed Yardeni, the president of Yardeni Research is less optimistic about a quick bounce-back. And US stocks ‘are not cheap’.
Equities in China, Japan and Europe present ‘notable value’.
Your Money
Insights, trends and what this means for you and your purse
UK: Covid-19 lockdown boosts household financial confidence and savings
Research suggests that Brit’s determination to save money during the lockdown has boosted their confidence in their future finances.
UK dividends plummet £22bn in record quarterly fall
Dividends were down 57.2% on Q2 2019 as three-quarters of companies cancelled or cut their payouts.
The oil, gas and energy sector took the second biggest hit on £2.2bn of cuts (13.7% of the total fall).
Link predicts that UK equities will yield 3.6% this year and 4.1% in 2021 its ‘best case’ scenario, ‘below the long-run average’ but in line with the last few years.
It could take until 2026 for dividends to return to their 2019 level.
UBS: ultra wealthy clients are moving out of stocks and into illiquid assets
During the big decline in the stock market in March, UBS’s richest clients took out loans to place billions into the stock market.
They are now looking to pull their money out and invest in residential real estate and private equity, or to make corporate or strategic deals.
UK: Unmarried parents: key financial considerations
Almost half (48.5%) of babies were born to unmarried parents.
The average age for women to have their first child was 30.7 years in 2019.
Ensure you have a will specifying what your child/unmarried partner will inherit (in case of death).
The birth mother will have parental responsibility but the birth father will need to register for parental responsibility.
Both parents are jointly responsible for providing financial support.
Drafting a co-habitation agreement can set out how money will be managed; who owns what and what will happen should the partners split up.
Companies to Watch: winners & losers
Companies to watch and share price movements
Synairgen Pls: positive results from a trial of a COVID-19 treatment
Shares soared 552% after the company said its experimental drug cut the risk of developing the worst symptoms of Covid-19.
The inhaled product is a formulation of a naturally occurring protein lacking in those who are more susceptibility to the coronavirus.
Its year-to-date gain is 3,194% with a market cap of about £289.2m ($365 million).
Yamana Gold to list on the London Stock Exchange
One of Canada’s biggest gold producers plans to list on the London Stock Exchange, as precious metal surges during the pandemic.
Yamana Gold has a market cap of $5.3bn and expects to start trading in the next few months.
Yamana’s focus on the Americas and record of paying almost $1bn in dividends since 2007, is likely to appeal to investors seeking exposure to the rising gold price.
In the Spotlight
Is there a topic you'd like us to Spotlight? Please tweet @jointhepurse
What role will the US dollar play in the Covid recovery?
According to the IMF, the dollar’s exchange rate will be a key factor in how quickly the global economy recovers.
The US dollar is the dominant ‘invoicing and financing’ currency.
Exports are mostly priced in dollars (plus commodity markets): demand does not go up when the domestic currency weakens.
Because 23% of exports are invoiced in US dollars, it has become a key driver in global economic growth.
When the US dollar strengths, imports are expensive which reduces demand.
With the number of coronavirus cases on the rise and investors wanting to hold the US dollar, the dollar exchange rate could increase.
And a higher dollar exchange rate will limit global trade and economic activity.
Have You Seen This?
Female-focused news, reports, research, campaigns
Are some of the world’s biggest pensions failing women?
Women have less in their retirement pots (compared to men):
UK: women have 35% less
US: women have 32% less
Denmark: women have 8% less
Know this: Pension funds are designed for full-time workers who do not have a break in employment. Women tend to take career breaks, take on low-paid or temporary employment but live longer. Seek advice about how you can make up for any income shortfalls.
Woman who oversaw Carta study on gender pay gap sues startup (over unequal pay)
Emily Kramer who was VP of Marketing at Carta, joined to help bring more diversity and transparency to the cap table.
On Tuesday, Emily sued her former employer for unequal pay and other forms of gender discrimination.
The company is valued at $3bn, having raised more than $600 million from top investors including Andreessen Horowitz, Lightspeed Ventures, and Goldman Sachs.
Know this: a significant amount of wealth is created from company ownership. Much like the gender salary gap, the average woman equity holder holds significantly less equity than the average man holder. This is why it is crucial that women entrepreneurs know how to protect their equity when raising investment. And women who work for startups should seek advice (at the very least negotiate ie think 30% increase) before they agree to equity and/or employee stock options. Remember: every time you aim higher, negotiate and protect what is yours, you grow your net worth and ensure your long-term financial future.
Survey: almost 50% of working mothers laid off due to lack of childcare (during the coronavirus)
A questionnaire which gathered responses from almost 20,000 working women in 48 hours, was a ‘cry for help’.
According to Joeli Brearley, founder of Pregnant Then Screwed, a lack of childcare had a negative impact on how women were perceived or treated at work.
Know this: ‘maternal wall bias’ is a form discrimination many working mothers experience. And it occurs when colleagues view mothers—or pregnant women—as less competent and less committed to their jobs, and it limits the extent to which women can advance in their careers. If you have a partner, it’s important to agree that childcare is equally split between you. Seek out employers who genuinely support you and your work.
What We’re Tracking
Female-focused products or services, start-ups and businesses led by women, investment and research.
Angel City: (US)- a new Los Angeles all-women football team is being funded by high-profile women such as Serena Williams, Natalia Portman to launch in time for the 2022 National Women’s League Soccer League season.
Serena Williams’ husband Alexis Ohanian is also listed as part of the ownership group, as well as their two-year old daughter Olympia.
The group includes 14 former US national team players, actresses Eva Longoria, Jennifer Garner, Uzo Aduba, Jessica Chastain and America Ferrera, plus investors from the technology and media sectors
Forerunner Ventures: (US)-the early-stage venture capital firm known for its consumer focus, founded by Kirsten Green who is Managing Partner, has raised $500m in the middle of the pandemic.
It has invested in companies including Glossier, Warby Parker, and Birchbox.
This is their 5th fund and an increase of 39% on its last fundraise in 2018.
Money Habits of the Week
Do you have a money habit you would like to share with us? Tweet @jointhepurse
Follow the ‘energy’ to what interests you in terms of money and investing so you commit to learning on a daily, weekly and monthly basis.
Are you interested in how remote technology is changing the future of work?
Or are you drawn to women’s health and femtech in particular?
Are you excited about how women’s wealth can power female entrepreneurs?
Or do you want to join a community of women who are on a similar learning journey to you?
Whatever it is: decide to take one step towards that goal this week.
Tell us how you’re getting on @jointhepurse.
What We’re Watching
Watch this TED talk: what if your attachment to being a ‘good’ person is holding you back from actually becoming a better person? Social psychologist Dolly Chugh explains why it's hard to spot your biases and acknowledge mistakes and shows how the path to becoming better starts with owning your mistakes.
Dolly Chugh is a social scientist who studies the psychology of good people.
Coffee Break? Read This
Christine Lagarde has said that female leaders have proven themselves in the Covid crisis
Alexandria Ocasio-Cortez being subjected to sexism at work is no surprise to any female employee
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.
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