Women are the emergent investor, BlackRock is going green, is this the year of Bitcoin? We will have pay equality in 257 years (!) and how to build 'Atomic Habits' to change your life.
Welcome to our #3 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 so that it is fun and meaningful to you.
Ultimately we want to support you in making well-informed financial decisions, grow your net worth and ensure your financial security.
From The Purse…
Editorial from the Founder
It is no secret that the financial services industry is missing out by not meeting the expectations and needs of women. It is a hugely underserved market-in fact, it is now estimated globally to be valued at $700 billion.
I’ve written about how women can feel excluded by an industry designed for men whose primary focus is on how to outperform the market.
Whilst performance is important for women, we tend to think more broadly about how to achieve our goals and the impact this has on everything else.
It’s no surprise that women are the driving force behind impact investing, do consider social impact important and prefer to invest into businesses that are sustainable.
BlackRock’s decision to alter their investing strategy to focus on sustainability and inclusivity is not only about taking a significant stance in protecting our environment (for returns); it is a fundamental nod to the emergent investor market: women.
Women currently hold 40% of global wealth according to Credit Suisse's Global Wealth Report 2018. We are in the midst of a major shift in assets to women and women’s wealth will continue to rise over time.
We therefore need products and services that cater to our needs; that are designed to help us achieve our goals and very much reflect our life cycle and life events.
The good news is that money managers like BlackRock are on board which can only mean that change is afoot. Which is just as well because as women we can and will vote with our feet.
I hope you enjoy this week’s newsletter. Until next week!
Jana
The Big Picture
Global markets and economy news, trends and indicators
The US and China signed the initial trade pact on 15th January after 18months which has had an impact on global growth. China will purchase $200bn of US goods and services over two years-in exchange of the US rolling back some of its tariffs. (Source: Reuters)
BlackRock, the world’s largest money manager ($7 trillion in assets under management), is changing its investing strategy to make sustainability ‘a new standard for investing’. This will include launching new active and passively managed funds that focus on socially responsible investing. (Source: CNBC).
As a result of the announcement, BlackRock had the biggest-ever inflow of $1.15bn into their iShares ESG MSCI USA ETF:
The global debt-to-GDP ratio is at 322% which is the highest level on record, as of the third quarter of 2019. Global debt, which comprises borrowings from households, governments and companies, grew by $9 trillion to nearly $253 trillion during that period according to the Institute of International Finance. (Source: CNN Business)
According to Bloomberg’s 2020 crypto outlook report, bitcoin’s price could move to the top of its 2019 range and rest the $14,000 high, as stock volatility continue and geopolitical tensions increase. (Source: Coindesk)
Looking Ahead in 2020
The next Bitcoin halving will take place on 18 May 2020. And if we look to past performance it is possible (arguably) that Bitcoin could go up to $400,000:
Following the first halving in November 2012, Bitcoin’s price increased from a $2.01 bottom to the top of $270.94 – a 13,000 percent increase. The second halving, in July of 2016, saw Bitcoin go from a bottom of $164.01 a top of $20,074 – a similar increase of 12,000 percent.
..If Bitcoin moves similarly after May’s halving, investors can expect the price of the coin to reach as high as $400,000 (although this is subject to much debate). (Source: BeInCrypto)
Have You Seen This?
Female-focused news, reports, research, campaigns
Fawcett’s 2020 Sex and Power Index: the UK is still generations away from equality in top jobs. Key findings include:
Business: Women make up just over one in 20 CEOs of FTSE 100 companies. This remains unchanged since our last report in 2018. None of these CEOs are women of colour.
Media: Women make up only 21% of national newspaper editors – with just four women in the top jobs.
Cabinet: 30% of the Cabinet are women and 47% of the Shadow Cabinet.
According to a new report by the World Economic Forum (WEF), it may take more than two centuries to close the gender pay gap if the rate of the progress does not improve. Key highlights include:
Men and women will have pay equality in 257 years, a rise of 55 years on last year’s estimate.
Even in nations where making improvements have been prioritised, a lack of access to capital, land or financial products prevent women from making a living.
While the WEF found a 2% increase in the number of women in senior roles, it says women’s participation in the labour market is stalling.
Currently, only 55% of adult women are in the labour market, compared to 78% of men. Meanwhile, more than 40% of the wage gap and 50% of the income gap still need to be closed.
According to Klaus Schwab, Founder and Executive Chairman of the WEF: "Supporting gender parity is critical to ensuring strong, cohesive and resilient societies around the world. For business, too, diversity will be an essential element to demonstrate that stakeholder capitalism is the guiding principle. This is why the World Economic Forum is working with business and government stakeholders to accelerate efforts to close the gender gap.”
Source: (World Economic Forum & Consultancy UK)
What We’re Tracking
Female-focused products or services, crowdfunding campaigns, start-ups led by female entrepreneurs & investment, research.
Lovability, (US) a groundbreaking sexual health & wellness brand known for its message of empowerment, inclusivity and social activism, has been acquired by a women-led investor group led by sexual wellness pioneer Maureen Pollack.
The sale of Lovability to Pollack and her partners represents a milestone in the sexual health and wellness industry, marking one of the few corporate acquisitions in this space between two women founders.
(Source: Yahoo Finance)
Money Habits of the Week
Do you have a money habit you would like to share with us? Tweet @jointhepurse
Here is a list of 5 key money habits that separates folks who have money from those that don’t:
They live below their means
They don’t try to keep up with the Jones’
They work for themselves
They hold on to their money (and they do not spend the principal)
They invest their money consistently and over the long term.
Caught Our Eye
New digital tools and cool stuff for managing your money
If you are self-employed or a contractor, you will need to manage your own pension. We’ve come across this app called Penfold and we like it.
Check out their pension calculator
Download the app on your mobile, it takes 5mins to set up, decide how much you want to save every month and stay in control of your future finances.
We’re Applauding
Female role model in politics, finance, business, money, or investment
We’re excited that Rachel Holt, who was one of the first employees at Uber (and until now the head of mobility) has left to set up a venture capital firm called Construct Capital.
We need more women in venture, because female-focused start-ups and female entrepreneurs have far less access to capital. Although this is a complex problem, investors who understand the female market (and its pain points) are more likely to invest in it.
What We’re Listening To
James Clear has spent years honing the art and studying the science of habits. He has written the ground-breaking book called Atomic Habits. He has identified that real change comes from the compound effect of hundreds of small decisions-whether it is waking up five minutes early or holding a single short phone call. Clear reveals exactly how these minuscule changes can grow into such life-altering outcomes.
Listen to this podcast interview (1hr 20min) and think about how you can apply this to spending less, saving more and investing your money.
What We’re Reading
If you find most books about finance or money a little dull, try this book: The Latte Factor by David Bach. Written as a parable, it explains the principles of money: how to make money work for you and why you can live a rich life now.
Coffee Break? Read This
Your money: avoid divorce regrets by taking control of your money now
5 myths that keep freelancers from getting paid what they’re really worth
A Japanese politician is taking paternity leave. It’s a big deal.
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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