Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing
Welcome to our #45 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.
“For women who are taking control of their financial future”
-Jana Hlistova
From The Purse…
Editorial from the Founder
Global equities are moving further into bubble territory, according to the Buffet-indicator.
Global stock market cap has hit an all-time high this week at $95tn, which is equal to 108% of global GDP; the highest figure since 2007.
Last Monday, the global markets rallied on the Joe Biden win in the US Presidential election and news of a Covid-19 vaccine breakthrough by U.S pharmaceutical giant Pfizer and German biotech firm BioNTech.
The UK economy grew at a record quarterly rate 15%+ but recovery slowed in September. Meanwhile UK unemployment increased to 4.8% in the 3 months to September.
In the Your Money section, read about research by Fidelity International which says that 22% of women have a secret savings fund should their relationship end or they choose to leave their partner.
According to Goldman Sachs, listed European companies that have more women at senior levels have benefited from strong share-price performance (this is based on data for Stoxx 600 companies since the 2008 financial crisis).
The Equality and Human Rights Commission (EHRC) said that the BBC has not breached the law (regarding equal pay), after selecting and reviewing 10 cases between 2017 and 2019.
Former BBC China editor Carrie Gracie, who resigned in 2018 in protest at pay inequalities, has called the investigation by the EHRC a ‘whitewash’. We couldn’t agree more.
And we’re tracking UK fintech startup called PensionBee, founded and run by Romi Savova. They are close to appointing bankers before a flotation in London set to value it at £300m or more.
And don’t forget to listen to The Purse Podcast interview with Tina Weeks, the founder of Serenity Financial Planning. We talk about financial planning and why it’s crucial, how women should think about their pension especially important if going through a divorce. And Tina shares advice on how to manage your money during the pandemic.
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:
The global stock market cap has hit an all-time high this week
It is equal to 108% of global GDP which is the highest figure since 2007.
We are moving further into bubble territory.
European markets tracked their global counterparts higher Monday as investors reacted to Democrat Joe Biden’s win over Donald Trump in the U.S. presidential race.
Stocks received a further boost as U.S pharmaceutical giant Pfizer and German biotech firm BioNTech said their coronavirus vaccine was more than 90% effective in preventing Covid-19.
The UK economy grew at a record quarterly rate 15%+ but recovery slowed in September
GDP increased by 9.1% in June, 6.3% in July, and 2.2% in August before slowing again in September ie growing by 1.1% only.
UK unemployment increased to 4.8% in the 3 months to September
But the unemployment rate is still below its levels after the financial crisis ie it increased to 8%+ in 2011.
The Bank of England thinks the unemployment rate will peak at 7.75% next year.
Future Focus
Keeping an eye on key predictions, innovations and what’s going to impact the future
US: legendary investor Jeremy Grantham says he’s certain the stock market is in a bubble
The cofounder and chief investment strategist of the asset-management firm GMO, expressed concern about a stock market bubble for the first time in June.
Grantham said that the bubble was disconnected from economic realities (and neither a vaccine or a fiscal stimulus would change its trajectory).
A million people may quit self-employment in Covid-hit UK
The study by the LSE’s Centre for Economic Performance (CEP) found that in August – 58% of the UK’s 5 million self-employed had less work than normal.
A fifth of the self-employed anticipated quitting altogether, rising to 58% for those under the age of 25.
Your Money
Insights, trends and what this means for you and your purse
More than a fifth of women have a secret savings fund
According to research by Fidelity International, 22% of women have a secret savings fund should their relationship end or they choose to leave their partner.
Fidelity found that secret funds have been setup by 21% of women aged 18 to 34, equating to 20% of those living with their partner, and 27% of those with children.
One in eight (12%) women admitted that they find it difficult to discuss their household’s spending and budgeting with their partner, and another 12% said they find it difficult to discuss savings and investments.
UK adults spend an entire year worrying about their money over their lifetime
A study of 2,000 Brits found they typically think about their finances four times a day, for a total of 28 minutes.
The top 10 money worries among Brits are:
How much money they'll have left over after the main outgoings
Household bills
How much they should put into a savings account
Upcoming occasions e.g. buying birthday gifts
How they will cope if their financial situation changes
Interest rates
Paying off debts
Whether they can afford a holiday
Whether they can afford personal treats e.g. a haircut
Their rent / mortgage
Have You Seen This?
Female-focused news, reports, research, campaigns
The stock market boost from more women in management
According to Goldman Sachs, listed European companies that have more women at senior levels have benefited from strong share-price performance (based on data for Stoxx 600 companies since the 2008 financial crisis).
However, correlation does not mean causation. For example, it could be that by hiring from a broader pool that includes both sexes, companies are able to attract the best talent. Equally, it may work the other way: women may be more choosy about their employer and end up picking higher quality businesses.
Know this: having more women in senior positions is associated with a lower cost of equity, stronger share-price performance and lower volatility of shares.
BBC equal pay: 'No unlawful discrimination', watchdog finds - but critics hail inquiry a 'whitewash'
The Equality and Human Rights Commission said that the BBC has not breached the law (regarding equal pay), after selecting and reviewing 10 cases between 2017 and 2019.
Former BBC China editor Carrie Gracie, who resigned in 2018 in protest at pay inequalities (and was later given an apology and back pay) hit out at the findings after the watchdog made them public on Thursday.
Know this: pay discrimination is a complex issue largely due to systemic bias in decision-making around how much women get paid (especially where the hiring process and salary negotiation is not standardised). The gender pay gap exacerbates the problem which compounds over a woman’s lifetime and has a profound impact on a woman’s net worth.
Listen to our podcast interview with Katie Donovan who is one of the leading pay-equity experts and advocates in the US.
What We’re Tracking
Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.
PensionBee: (UK)-founded by Romi Savova, is a financial technology company that has been dubbed ‘the Monzo of pensions’.
They are close to appointing bankers before a flotation in London set to value it at £300 million or more.
PensionBee enables customers to transfer and aggregate legacy pension pots on to a single, low-cost platform accessible from a smartphone.
Customer numbers have risen from 15,000 to 115,000 in the past two months and assets under administration to £1.2 billion.
Net operating losses at PensionBee doubled in 2019 to £6.86 million.
Coffee Break? Read This
Meet Kathrin Jenson, the woman leading Pfizer’s Covid-19 vaccine effort
Startup fundraising is the most tangible gender gap. How can we overcome it?
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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