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Global stocks in 'bubble territory', how can you recession-proof your money, check out our podcast on responsible investing and Pinterest ex-COO sues for sex bias and more
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Global stocks in 'bubble territory', how can you recession-proof your money, check out our podcast on responsible investing and Pinterest ex-COO sues for sex bias and more

Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing

Welcome to our #33 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


From The Purse…

Editorial from the Founder


Global stocks have hit a milestone: they are valued at more than 100% of global GDP. According to Warren Buffet, this is an indicator that stocks are in ‘bubble territory’.

China’s retail sales drop is fuelling concern about the global economic recovery even though China is the only major economy not in a recession this summer.

The UK fell into a recession in Q2, with a 20.4% decline in GDP-which is much worse than the US or the eurozone.

The FTSE 100 sank Friday: weeks of gains were wiped out due to the latest round of quarantine restrictions, poor Chinese data and a stalemate in the US stimulus package debate.

US retail sales is up but so is inflation, which according to Howard Marks, the billionaire investor, is a real risk to the US economy.

And as the combined balance sheet of central banks go up, so does bitcoin.

Read about how to recession-proof your money and we spotlight what a recession is and how it may affect you.

In the Have You Seen This Section?, we highlight a study by NOW: Pensions about single mums and why they have 88% of the pension men do.

And sexism in Silicon Valley is alive and well: Pinterest ex-COO, Francoise Brougher claims she was fired over sex bias complaint. Read about what happened on her blog. It’s worth noting that even her stock vesting schedule was different to her male peers.

Hmm, we’re not sure how we feel about Pinterest now.

Don’t forget to check out The Purse Podcast where I interview Jessica Robinson, Founder & MD of Moxie Future: we talk about responsible investing, why investing for impact is smart and how to start today.

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:


Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future


  • US: Howard Marks warns of long-term inflationary risk

    • The billionaire investor said that the Federal Reserve’s emergency relief funds helped the US economy avoid a depression.

    • However, we are likely to see inflation go up.

    • And another by-product may be a rise in zombie-companies; businesses which are saddled with enormous debt. They usually need to borrow money to service their debt and probably should go out of business.


Your Money

Insights, trends and what this means for you and your purse


  • UK recession: how will it affect women?

    • Female-dominated industries have been hard hit

    • Higher unemployment for women in those industries

    • Women are more likely to be furloughed

    • The furlough scheme will come to an end in October

    • Note from The Purse: upskill where you can. Look into how you can develop your digital skillset and experience.

  • 6 ways to recession-proof your money

    • Update your CV

    • Don’t panic about your pension (for now)

    • Check your emergency fund

    • Maintain a good credit score

    • Reduce your expenses

    • Sort your savings


Companies: winners & losers

Companies to watch and share price movements



In the Spotlight

Is there a topic you'd like us to Spotlight? Please tweet @jointhepurse


What is a recession and how could it affect me?

  • The UK is in a recession for the first time in 11 years.

  • A recession is defined as the fall in Gross Domestic Product (GDP):

    • the value of goods and services produced falls (for at least two consecutive quarters).

  • The UK GDP fell by 2.2% in Q1 (January-March) and declined 20.4% in Q2 (April-June): the steepest fall on record due to the pandemic lockdown.

  • Some people, and mostly women, have lost their jobs, it may be harder to find a job and a pay rise may be difficult.

  • A recession is not felt equally across society; inequality is likely to rise.

  • For example, for homeowners who have a job, mortgage interest payments fell leaving them with more money in their pocket.

  • Public sector workers have done less well.

  • According to the Bank of England (BoE), the UK economy will grow again in Q3 (July-September). However unemployment will continue to rise as the furlough scheme ends in October.

  • Source: BBC


Have You Seen This?

Female-focused news, reports, research, campaigns


  • Single mums retire on much less than other women

    • According to a study by NOW: Pensions:

      • They tend to be employed in low-paid part-time roles that fit around childcare.

      • Unless you earn £10k, you miss out on being auto-enrolled into a pension.

      • Single mums reach 65 with around £18,300 in private savings.

      • Other women retire on £51,000 and men on £156,500.

      • They are also worse off than divorced women, who end up with savings of around £26,100, while divorced men have £103,500 by the time they stop work. 

Know this: saving for retirement is crucial. Knowing that you have enough saved up to retire on gives you peace of mind. Sit down and make a plan for what you have to do. Seek out a financial advisor or someone who can help you. If you are an employee, make sure you (at least) match your employer’s contribution. And if you are self-employed, you can set up a self-invested personal pension (SIPP).

  • Gender wealth gap is increasing during the pandemic

    • Sally Krawcheck, Founder & CEO of Ellevest has said:

      • Women have had to deal with a disproportionate amount of job loss during the pandemic because they're more likely to have jobs deemed ‘essential’.

      • They are also likely to experience micro-aggressions and misogyny even more during the ‘Zoom era’.

      • As a result, the gender wealth gap is accelerating.

Know this: we know it is difficult to save and to invest if you have lost your job or simply have less time due to childcare. However, as soon as you are in a position to start saving again, look into how you can make your money work for you. The time you put in today; the steps you take to invest for maximum return, will allow you to retire and live comfortably in later life.

Know this: this experience is common to women and minorities who do not have informal handshake relationships with their male colleagues and are regularly excluded from the rooms where decisions are made. It’s crucial to find an environment where you can prosper and grow. It’s not surprising we are seeing so many women ‘go-it-alone’ together. Whether this is starting a business or a venture capital fund; women are creating environments where they can prosper. And importantly, women are building environments where they can not be held back.

Share The Purse


What We’re Tracking

Female-focused products or services, start-ups and businesses led by women, investment and research.


  • La Famiglia (Europe)-is a VC fund which invests in early stage B2B startups-founded by Jeannette zu Fürstenberg:


Money Habits of the Week

Do you have a money habit you would like to share with us? Tweet @jointhepurse


  • Did you know that ESG funds have outperformed traditional funds during the pandemic?

  • Look into ESG or responsible investing and research how you can get started online.

  • There are many online platforms and mobile apps you can easily access and invest with very little money.

  • Even if you invest £25-£100 a month, you’re more likely to read up on your investments and start learning as you go.

And don’t forget to tell us how you’re getting on @jointhepurse.


What We’re Watching


  • Greta Thunberg: is a Swedish climate change activist.

  • Watch the TED talk: in this passionate call to action, 16-year-old climate activist Greta Thunberg explains why, in August 2018, she walked out of school and organised a strike to raise awareness of global warming, protesting outside the Swedish parliament and grabbing the world's attention. ‘The climate crisis has already been solved. We already have all the facts and solutions,’ Thunberg says. "All we have to do is to wake up and change."


Coffee Break? Read This



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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