Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing
Welcome to our #49 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 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 have lost $300bn market cap this week but are still valued at over $100tn; which is 114% of global GDP.
Meanwhile Brexit talks are on a ‘knife-edge’ but the EU and UK have agreed to extend trade deal talks today. UK equity funds have bled more than $2bn over the past two months. The latest withdrawals bring UK equity fund outflows since the Brexit referendum to $42bn (17% of total assets held since June 2016).
UK stocks have been battered by Brexit uncertainty over the past four years: the FTSE All-Share index is down 12% since the beginning of the year, while the US S&P 500 has risen by 12%.
Meanwhile, is the US stock market starting to feel like it’s 1999 (before the dotcom crash in 2001-2002)?
AirBnb soared close to a $100bn valuation as shares more than doubled at its IPO. Tesla’s share price has gone up by 50% since it was announced it will be included in the S&P 500 on 21 December (it is up 600% in 2020).
Massachusetts Mutual Life Insurance Co. bought $100m of bitcoin for its general investment account-this is the latest sign of mainstream acceptance for the digital currency.
Meanwhile, Apple’s co-founder Steve Wozniak has launched a new cryptocurrency.
In the Your Money section, read about how to Brexit-proof your finances. And what are the seven ways married women can beat the £186,000 pension savings gap?
A healthcare fund run by an all-female team has outperformed its peers by 65%, largely due to its far-sighted bet on medical stock Moderna Inc.
And we’re tracking US startup Everlywell, founded by Julia Cheek, which is an at-home medical testing company which has outperformed during the pandemic. It has just raised $175m series D at around $1.3bn valuation.
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 $300bn market cap this week but still valued at over $100tn
Global stocks are valued at 114% of global GDP.
Brexit talks on a ‘knife-edge’ but the EU and UK have agreed to extend trade deal talks
Talks to unlock a post-Brexit EU-UK trade deal resumed Sunday morning.
Both parties are increasingly pessimistic about a deal.
UK equity funds have bled more than $2bn over the past two months, highlighting the extent of investor unease as a no-deal Brexit becomes increasingly likely.
The latest withdrawals bring UK equity fund outflows since the Brexit referendum to $42bn (17% of total assets held since June 2016).
UK stocks have been battered by Brexit uncertainty over the past four years: the FTSE All-Share index is down 12% since the beginning of the year, while the US S&P 500 has risen by 12%.
From AirBnb to Tesla, it’s starting to feel like 1999 (ie the internet bubble followed by the dotcom crash in 2001-2002)
Future Focus
Keeping an eye on key predictions, innovations and what’s going to impact the future
UK economic recovery will lag behind all rivals (bar Argentina)
According to OECD’s economic outlook report, the UK economy is expected to contract by 11.2% this year, compared with the 10.1% fall in GDP it was forecasting in September.
UK: The roaring 2020s? Don’t bank on it-here’s why:
Inflation could start to rise, and the Bank of England may need to increase interest rates (which would eliminate an ‘economic boom’).
Policy error is a potential threat: the UK Chancellor has to make a judgement soon about how much support he is going to continue to give to the economy – and for how long.
More borrowing by the UK Chancellor than any other during peacetime Britain.
Consumer confidence is weak. Unemployment fears loom.
There is a limit to what the Bank and the Treasury can do. Britain’s problems are as much to do with the structure of the economy as they are to do with demand.
Apple’s Co-founder Steve Wozniak launches new cryptocurrency
Steve Wozniak has launched a new company called Efforce and a new token: WOZX (on 3 Dec). Efforce was first mentioned in July 2019 at the Delta Summit in Malta.
According to its website: ‘Efforce is the first platform that allows contributors to benefit from the energy savings generated by energy efficiency projects worldwide’.
It is the first blockchain-based energy-saving platform.
Companies: winners & losers
Companies to watch and share price movements
AirBnb soars to near $100bn valuation as shares more than double at IPO
AirBnb, the short-term rentals company, started trading on the Nasdaq on Thursday.
The share sale was priced at $68 a share but the company started trading at over $150 a share and closed the day at $144.70.
In April, it laid off 25% of its staff – nearly 1,900 employees. But bookings have bounced back as people fled the cities.
Tesla said to sell up to $5bn worth of its shares over time
Tesla stock has soared more than 600% this year, lifting its market capitalisation to more than $600 billion. (Some believe Tesla shares could soar another 300% to $2,500 in 3 years time.)
(The company earned about $21 billion in revenue and only $1.4 billion in operating income in the first nine months of this year.) And many consider Tesla stock to be overvalued.
Musk's electric-vehicle company has struck an equity-distribution agreement with 10 banks including Goldman Sachs. Tesla and the banks will decide how much stock is sold and at what price on a daily basis.
This is the latest sign of mainstream acceptance for the upstart digital currency.
The investment is a tiny one for company whose general investment account totalled nearly $235bn as of Sept. 30.
The company has $2.3 billion of bitcoin and other cryptocurrencies under management.
Your Money
Insights, trends and what this means for you and your purse
No-deal nightmare: ten tips to Brexit-proof your household finances
Try to keep some wiggle room in your budget
Build a savings safety net
Consider locking in savings rates
Look at fixed mortgage rates
Think about a diverse investment portfolio
Plan pension income
If you need to convert currency, consider the timing
Do not assume house prices will go up indefinitely
Plan further ahead for travel
Check your mobile small print
7 ways married women can beat the £186,000 pension savings gap
Equity release lender More2Life estimates the pension savings gap when life expectancy is taken into account is £108,130 for single women but rises to £186,120 for married women or those in a relationship.
Married women, women in relationships and those with families are more likely to take breaks from employment or reduce hours to look after their family.
How can married women close the pension savings gap:
Figure out how much you need
Start saving as soon as possible
Claim National Insurance credits for the state pension
See if your spouse can pay into your pension for you
Make sure pensions are included in your divorce settlement
Consider financial advice
Claim child benefit.
Have You Seen This?
Female-focused news, reports, research, campaigns
Fund run by an all-female team surges past peers to a 65% gain this year
A Baillie Gifford & Co. health care fund run by an all-female team has surged past peers to a 65% gain this year, largely thanks to a far-sighted bet on medical stock Moderna Inc.
The nearest European peers to the Baillie Gifford fund trail it with gains of 13%-45% this year through November.
Know this: there is growing evidence to suggest that funds, including hedge funds, run by all-female teams have outperformed their peers (male teams) during the pandemic. Goldman Sachs has recently shared data regarding stock outperformance based on the gender diversity of senior management teams. It’s proven that diverse thinking drives a diverse approach which in turn improves performances and generates better return on investment.
What We’re Tracking
Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.
Everlywell: (US)-founded by Julia Cheek, is an at-home medical testing company.
The startup has raised $175m series D at around $1.3bn valuation.
Founded in 2015, it was a small home-testing company focused on women’s health with three mail-order test kits in its catalogue.
Now, the company is a digital health unicorn with more than 30 test kits, 250 employees and a projected $100 million in revenue.
According to Julia Cheek: “Consumers are changing how they use healthcare… and they are adopting digital solutions and home solutions at rapid rates we haven’t seen before.”
Coffee Break? Read This
The women radically overhauling their careers during the Covid crisis
Female founder representation in the media and the ‘raise’ double standard
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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