The coronavirus is impacting global markets, the UK has left the EU, why women should ask for more, we celebrate Leila Janah, and why 'Holistic Wealth' will make you happy.
Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing
Welcome to our #5 weekly newsletter in 2020.
Every week we curate key articles and content so you can stay informed and inspired about money and investing without the boring bits!
This is your weekly go-to place to read up on all things money-related.
We spend hours sifting through content every week and apply a female-lens to news and content about money and investing so that it is meaningful to you.
Ultimately we want to support you in making well-informed financial decisions, grow your net worth and ensure your financial security.
Source: Photo by Elle Hughes
From The Purse…
Editorial from the Founder
We live in a society which perpetuates money myths such as women are not very good with their money or they are not interested in how it works.
It is often said that women are squeamish about money, don’t ask nor do they negotiate.
However a recent study carried out by Slater and Gordon found 70% of those women who ask for more money from their employers receive a proportion or all of the amount they ask for.
According to the research, the majority of women are concerned about coming across as ‘rude’ or ‘ungrateful’.
But we know that women who do ask for more are often considered demanding or simply, not nice. Women often experience what is known as the double bind when they step outside of gender norms.
However this recent study indicates that perhaps employers are much more receptive to women negotiating their salary than they might have been in the past.
It goes without saying that the burden is on employers to ensure equal pay, however building a diverse and inclusive company is crucial for sustainable business.
And let’s not forget that women represent the largest market opportunity globally and female consumer purchasing power exceeds the GDP of China and India combined.
It is simply smart business for employers to want to incentivise and reward women fairly.
So if you are thinking about asking for a raise or have just received a job offer, please, please, please ask for more. (Think at least 30% more).
Consider your maximum and your minimum salary (& bonus plus benefits) and negotiate so that you achieve your maximum salary. And yes, it will feel uncomfortable!
If you have time, do read this book: Never Split the Difference.
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 has been declared a public health emergency by the World Health organisation (WHO): businesses and markets are feeling the impact.
The US Treasury yield curve has become inverted again. A negative yield curve is often regarded as an indicator of a recession.
Investors are seeking relative safety away from global equities to government bonds, pushing bond yields lower.
Global markets are down.
Negative-yielding debt ($13trn+) means that investors increase holdings in gold.
Holdings in gold-backed exchange traded funds have risen to their highest levels in seven years, following $19.2bn in inflows last year.
The UK left the European Union on Friday, 31 January after 47 years. The country is now in a transition period until the end of 2020. (Read more on the Brexit consequences for the UK, EU and the US).
On Friday, Boris Johnson told his cabinet:
‘the aim would be to have 80% our trade covered by free-trade agreements within three years’.
Here’s what happened to the British pound as the UK left the EU:
The Bank of England (BoE) has held interest rates at 0.75%. According to Mark Carney, the current governor of the BoE: “the most recent signs are that global growth has stabilised”.
However interest rates will be cut if the UK economy remains subdued.
UK's potential growth has been reduced to 1.1% (which is down from 2.9% before the financial crisis and 1.6% over most of the past decade).
Looking Ahead in 2020
What is the post-election reality for investors? (UK)
Boris Johnson and his chancellor Sajid Javid have promised a budget within 100 days-confirmed for 11 March.
UK equities have underperformed international markets by around 25% since the beginning of 2016 – December’s gains saw them claw back just a fifth of that.
“The UK market continues to look cheap and trades on a price-to-earnings ratio of just 13 times,” says Rupert Thompson, head of research at wealth manager Kingswood.
Have You Seen This?
Female-focused news, reports, research, campaigns
Women-led, values-based investing has gotten hot and now men want in:
While men dominate the financial sector overall, women lead when it comes to so-called ESG investing — using environmental, social and governance standards for investment decisions.
Bloomberg reported that 44% of the top ESG jobs that recruiter Acre Resources helped fill over the past five years went to women, much higher than the general level of penetration in the industry.
The research, conducted by employment law specialists Slater and Gordon, found 70% of those women who ask for more money from their employers receive a proportion or all of the amount they ask for.
This contradicts previous studies which have found that when women ask for a pay rise they are less likely to get one than men.
The latest study found anxiety about appearing “rude” or “ungrateful” was stopping women from requesting more money.
What We’re Tracking
Female-focused products or services, crowdfunding campaigns, start-ups led by female entrepreneurs & investment, research.
Bev (US): an ‘up market’ beverage start-up, founded and run by Alix Peabody has just raised investment from strategic investors (with a focus on women entrepreneurs). The market is estimated to be worth $1.9trillion; wine alone is expected to be a $450.5 billion business by 2024.
Legacy brands tend to sexualise alcohol consumption, and objectify women on TV, billboards, and in print,” said Peabody, in a statement. “That’s what we’re changing. We want women to know that drinking can be fun, inclusive and safe.”
Mind of My Own (UK): founded by Jill Thorburn (image below) and Yvonne Anderson, this start-up builds apps that help some of the most vulnerable children in society. These apps are fully accessible and provide a unique digital solution to advancing universal children's rights.
They have successfully reached the semi-finals of KPMG’s Best British Tech Pioneer competition for 2020 which are held on 13 February 2020.
Money Habit of the Week
Do you have a money habit you would like to share with us? Tweet @jointhepurse
We have picked a this week’s money habit from Keisha Blair (see more about her book Holistic Wealth below), shared in her viral article:
Pick a Solid Long-Term Investment—and Stick to it
“Not at 40, but before. Learn all you can about it and dive in. Don’t get into debt or leverage what you don’t have but take a measured approach to it and stick it out. Make sure it’s something that you truly love. Investing is part of a solid retirement strategy…”
Caught Our Eye
New digital tools and cool stuff for managing your money
Uphold (US): is a leading digital money platform and has introduced zero commission trading on cryptocurrencies designed to open up access to retail investors. Initially only available on iOS and Android.
‘Our goal is to create the easiest and most cost-effective place for retail investors to buy and sell cryptocurrencies and other assets,’ explained J.P. Thieriot, CEO of Uphold.
‘At Uphold, you can move your crypto into private wallets at will; send funds to virtually anyone, anywhere, instantly and free of charge; as well as use your holdings as a medium of exchange for payments…’
We’re Applauding
Female role model in politics, finance, business, money, or investment
We celebrate Leila Janah, a social entrepreneur who sadly passed away at 37 years of age on 24 January.
She created digital jobs that pay a living wage to thousands in Africa and India.
“Leila had a vision about bringing the dignity of work and the promise of a living wage to the world’s most vulnerable,” a colleague said.
What We’re Watching
Dame Stephanie Shirley: is the most successful tech entrepreneur you never heard of. In the 1960s, she founded a pioneering all-woman software company in the UK, which was ultimately valued at $3 billion, making millionaires of 70 of her team members. She is the author of her memoir: Let It Go which is currently being made into a film.
In March 2015 she gave a TED talk (2.1m+ views): Why do ambitious women have flat heads?. We have probably seen this TED talk at least 10x and want to share it with all of our readers-we hope you enjoy it as much as we do.
What We’re Reading
Keisha Blair, a trained economist, has expanded on her viral article "My Husband Died at 34; Here Are 40 Life Lessons I Learned From It" in her new book Holistic Wealth where she presents revolutionary strategies that will help you find balance and success.
Holistic Wealth teaches you how to find prosperity in key aspects of life, from financial stability and physical health to your emotional and spiritual connections with others.
Read more: Here’s why millennials are the holistic wealth generation.
Coffee Break? Read This
Female nurses paid much less than male counterparts despite dominating sector, report finds
The secret that may be keeping working women from greater success
This economist has a plan to fix capitalism. It’s time we all listened.
We’d love to hear from you. Do you have feedback? Have we missed anything? What would you like to see more of? Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.
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