Welcome to our #52 weekly newsletter.
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 2021 during Covid-19 and beyond.
If you’re short on time, listen to the 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 stocks lost $800bn market cap last week: investors digested a mix of news ranging from negative vaccine and virus news to elevated equity valuations and rising bond yields.
Meanwhile, a double-dip recession beckons in Europe. Economists are abandoning projections for first quarter growth.
According to Bloomberg, JPMorgan now projects a 1% downturn in the first quarter of this year compared with its earlier forecast for 2% growth.
The UK is ‘facing its darkest hour’ due to lockdown, with unemployment thought to be over 6%, according to the Bank of England Governor.
Last Monday, the Financial Conduct Authority (FCA) warned that investing in cryptocurrencies was risky and investors could lose their money.
Bitcoin had its biggest plunge, last Monday, since March, dropping 26% and wiping $185bn in value. However many regard this rally to be different (to 2017) as many institutional investors have allocated money into Bitcoin: it is increasingly regarded as a hedge against inflation.
Twitter’s share price tumbled as much as 12% (last Monday) after it permanently banned Donald Trump from its platform.
In the Have You Seen This? section, read about why women in top finance jobs will benefit everyone.
And we are tracking Harlem Capital-a US venture capital firm on a mission to change the face of entrepreneurship by investing in 1,000 diverse founders over the next 20 years. Apple has just announced it is investing $10m into Harlem Capital (as part of its plan to allocate $100m to address racial equity and justice).
Don’t forget to listen to our podcast interview with Katrine Marcal, an award-winning author, journalist and keynote speaker. (And here).
Katrine’s first book entitled ‘Who Cooked Adam Smith’s Dinner’ has been translated into more than 20 languages and was hailed by Margaret Atwood as ‘a smart, funny, readable book on economics, money and women’.
We talk about feminist economics, women’s work and women’s innovation.
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
Global stocks have lost $800bn in market cap this week:
Investors digested a mix of negative vaccine & virus news, fiscal stimulus plans, eroding US retail & employment activity on backdrop of elevated valuations & rising bond yields.
Double-dip recession beckons in Europe (as lockdowns drag on)
Economists are abandoning projections for first-quarter growth.
JPMorgan, which reckons the economy suffered a massive 9% contraction in the fourth quarter of 2020, now projects a 1% downturn in the first quarter of this year compared with its earlier forecast for 2% growth.
Most economists predict that it’ll be the second quarter that a recovery ultimately gets under way.
(The UK economy shrank 2.6% in November).
Bank of England (BoE): UK is facing its ‘darkest hour’ due to lockdown
Bank governor: Andrew Bailey says unemployment thought to be over 6% and talks down prospect of negative interest rates.
The total amount of electronic money pumped into the UK economy is (currently) £895bn.
The FCA issued a warning following the fall in bitcoin price from a high of $42,000 to $34,000.
Bitcoin’s biggest plunge since March shakes faith in crypto boom
Largest cryptocurrency fluctuates wildly after 26% plunge.
Bitcoin has wiped out about $185bn in value, more than the market capitalisation of 90% of individual companies in the S&P 500.
Many regard this rally to be different (to 2017) as many institutional investors have invested into Bitcoin and it is increasingly regarded as a hedge against inflation.
Bitcoin & cryptocurrencies
Global news, trends and insights
Last Monday, Bitcoin dropped 20% from its ATH
Bitcoin price reached an ATH of $42K and then dropped to £30K the following Monday.
This week, Bitcoin’s record-breaking rally hit a wall at circa $37K
Future Focus
Keeping an eye on key predictions, innovations and what’s going to impact the future
David Rosenberg: why comparisons between bitcoin and gold are absurd
‘No one ever talks about the risk that gold could go to zero because it simply can’t — there is a floor in its price, because it has physical properties that make it useful even outside of its primary function as a safe-haven asset.
But bitcoin, which has marginal intrinsic value, relies on the faith of its holders that it is worth more than nothing and that the technology is sound.
Up-and-coming technological innovations could put the entire crypto-security universe in jeopardy as the private keys that are currently thought to be impenetrable might be easily cracked by quantum technology.
Bottom line: we really don’t see the gold-bitcoin debate as being “one or the other.” There is nothing wrong with investing a small…share of your portfolio in something such as bitcoin, if your risk tolerance allows it.’
Invesco launches new Japan ‘ESG Momentum’ ETFs
Invesco have launched a new Japan and Asia Pacific focussed ETFs to add to their existing suite of ESG ETFs.
Invesco builds their ESG ETFs by taking MSCI Indices and removing companies involved in controversial, conventional or nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco or recreational cannabis.
Companies: winners & losers
Companies to watch and share price movements
Twitter’s share price tumbled as much as 12% (last Monday)
Twitter lost as much as $5bn in market value after it permanently barred Donald Trump from its platform.
Trump who had 88m followers generated enormous publicity for the platform over the past 6 years.
Your Money
Insights, trends and what this means for you and your purse
The hot alternative investments to watch in 2021
Here is a list of alternative investments which does not involve investing in the stock market including:
Cask whisky: spurred by rising demand from Asian investors, the value of rare whisky has soared 564% in the last decade, and the asset has outperformed not only fine wine but every other luxury asset.
Have You Seen This?
Female-focused news, reports, research, campaigns
Why women in top finance jobs will benefit everyone
A 2019 study by S&P Global Market Intelligence of 6,000 companies in the Russell 3,000 index over 17 years found that, within 24 months of appointing a female chief financial officer, companies’ profits increased by an average 6% and stock market returns improved by 8% compared with their male predecessors.
Although we have reached a record high this year with 90 female finance chiefs in the S&P 500 -18% of companies - more needs to be done.
Know this: involving men and women in decision-making broadens perspectives, drives creativity and innovation, often by questioning the status quo or default view and diversifies talent and skills.
What We’re Tracking
Female and diversity-focused products or services, start-ups and businesses led by women/diverse founders, investment, crowdfunding campaigns and research.
Harlem Capital: (US) -founded by 'a venture capital firm on a mission to change the face of entrepreneurship by investing in 1,000 diverse founders over the next 20 years’.
According to a 2020 Crunchbase Diversity Spotlight report, Black and Latino founders represented only 2.6% of the total $87.3 billion in funding toward the end of 2020.
On Wednesday, Apple announced it will be investing $10m in Harlem Capital (as part of its plan to allocate $100m to address racial equity and justice).
Coffee Break? Read This
Furlough refused to 70% of working mothers while schools shut-survey
The pandemic made the childcare crisis an urgent talking point -will the US finally change things?
Why should I be ashamed of making £1m? Female business owners speak of backlash against success
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.
The Purse Ltd. Copyright 2021 & All Rights Reserved.
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