The Purse

Welcome to our #133 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on research which indicates that women are most likely to be worried about their money right now.

The cost of living crisis is a concern for most, but women are more likely to seek financial support from family and friends and are concerned about not having enough money to retire on.

Don’t forget to listen to The Purse Podcast interview with Ruth Shaber MD. She is the Founder and President of the Tara Health Foundation and the Co-Founder and Board Chair for Rhia Ventures. We talk about the reproductive and maternal health market in the US and why more investment is urgently needed.

***

And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Women are most likely to be worried about money right now

The cost of living crisis is a concern for more women.

According to new research by Charles Stanley, 35% of women are feeling consistently anxious about money right now, compared with 26% of men, as reported by The Independent.

While the cost of living crisis, rising interest rates and surging inflation is a concern for most people, women are especially downbeat.

We know that women still earn 90p for every £1 earned by men. And the gender pay gap is wider in more senior roles-men out earning women by 50-70%+ if bonuses are taken into account.

Women experience more pushback in the workplace especially when it comes to asking for more pay and being promoted. It is not uncommon for women to have to leave their job in order to get a 20-30% salary increase.

And women have more career interruptions, work in part-time employment and live longer than their male partner.

More marriages end in divorce and women are single for longer.

It’s no surprise that women are more concerned about not having enough money to retire on. In fact, 63% of women feel this way, compared to 51% of men.

Here are the key findings from the research:

* 69% of women say rising living costs are what they worry about most (compared to 48% of men).

* 26% of women are having sleepless nights as a result (compared with 18% of men).

* 34% of women say they are confident their finances will hold up against the rising cost of living (compared to 49% of men).

* 46% of women rely on family and friends for financial support (compared to 34% of men).

* 61% women are concerned about not being able to save for emergencies and using up all of their ‘rainy day’ funds (compared to 46% of men).

* And 52% of women have never spoken to a financial advisor (compared to 44% of men).

However, the research also indicates that women are more open to learning and seeking financial professional help or advice.

We know that women are also better at reaching out to each other for support too. Remember: a problem shared is a problem halved.

What next? (Re) listen to The Purse Podcast

* #37: Marriage and divorce: how to manage your money with Mary Waring

* #43: Financial advice for women and how to grow your net worth with Cathy Curtis

* #44: How women can build a healthy relationship with money with Dr. Kate Levinson

News in Brief

Financial news

* S&P 500 dropped 369.38 points or 9.34% in September, largest one-month percentage decline since March 2020.

* US bonds with maturities >10yrs have suffered their worst slump since at least 1973. US 10 year yields hit 4% for 1st time since 2010.

* Eurozone inflation hit double digits for the first time ever. Jumps to record 10% in Sep. Core CPI accelerates to fresh all-time high as well.

* S&P revised the UK debt’s outlook to negative from stable, affirmed AA credit rating, saying recent tax-cutting plans could weaken the UK’s fiscal position. A negative outlook is often, but not always, a precursor to an actual downgrade.

* Sterling falls to record low against the dollar ie below $1.07 despite central bank and government reassurances about interest rates and stable finances.

* Bank of England (BoE) warns of risk to UK financial stability as it intervenes in bond market. Emergency action follows sell-off in UK government bonds. Gilts rallied. UK 30 year yields, which earlier touched 20 year high >5%, fell by 0.75ppts to 4.3%, biggest daily drop in yields ever.

* Following the BoE’s announcement, markets were pricing in a 1.5% point increase to 3.75% in November. The bank rate is expected to reach almost 6% by May 2023.

* Homeowners warned of ‘significant’ rise in UK interest rates. Bank of England’s chief economist speaks out after mini-budget, with financial markets expecting rates to reach up to 6%.

Crypto: bitcoin, ethereum, DeFi & NFTs

* BTC and ETH are flat for the week, while other top coins suffered bigger losses and the crypto market fell back below $1trn. (see current BTC price & ETH price).

* XRP is down 5% in the past week, even after an incremental victory in Ripple’s case against the SEC.

* Cardano (ADA) is down 7.5% even after pulling off its Vasil hard fork; Solana (SOL) is down 5% after the network suffered a three-hour outage Friday night; Dogecoin (DOGE) is down 7%; Avalanche (AVAX) is down 5%.

* Ethereum transaction costs have fallen sharply since last November. The number of users, transaction count on Ethereum, and transaction count on Layer 2s remain on a positive upward trajectory.

* Minting on Solana hits new high of 312,000 on Sept. 7, up from 39,000 just three days earlier. On Sept. 6, Solana-based NFT market volume his $11.5 million, the highest level since May. The surge was likely influenced by the excitement surrounding the y00ts mint. The 15,000-strong NFT collection is a new release from Dust Labs, the team behind the DeGods NFT collection.

* MicroStrategy making new bitcoin play, developing Lightning Network-based Saas platform.

The Purse Podcast

We cover the following in our conversation:

* The women's health market in the US

* Why the market is underinvested

* Investing in reproductive & maternal health

* Female investors

* And more

Please enjoy! Listen on Apple Podcasts and Spotify+

Coffee Break? Read This

* Why has Britain fallen in love with botox?

* Setting career goals when you feel overwhelmed

* Faster times, record numbers: the science of running marathons as an older person

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 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #132 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we highlight the new Women Angels Insights report from the UK Business Angels Association (UKBAA) and Beauhurst.

Over 5000+ female angel investors have invested in 1000+ female founded startups in the last 10 years, generating over £2bn of investment. Although we celebrate this, women are still in the minority as angel investors and more needs to be done.

Listen again to our interviews with female angel investors Jordan Dargue, Gillian Fleming and Jill Pay on The Purse Podcast.

***

And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Report: UK female angel investors help drive £2bn+ investment

Female angel investors are critical to female founders accessing capital

According a new study from the UK Business Angels Association (UKBAA) and Beauhurst (sponsored by NatWest), more than 5,000 women are making angel investments across the UK.

As well as driving more than £2bn+ investment, female angel investing has generated more than 10,000 jobs over the past decade.

And importantly, they have invested in 1000+ female founded startups.

But women remain the minority as angel investors. Of a total 36,800 angels in the UK only 14% (5,064) are women, and less than 0.5% (157) of female angels have achieved a portfolio of 10 or more.

And the shortage of female angel investors has a direct impact ..

…on female founders. Women are at least twice as likely to invest in female-founded startups than men.

According to the Women Angel Insights report, almost 25% of companies backed by female angels, were female-founded. This compares to the 19% of female-founded companies backed by the angel community overall.

We know that female founders often have to overcome…

… gender bias in the fund-raising process dominated by the traditional white, male investor.

Women spend more time educating the white, male investor. Female founders have to work harder and need to jump through hoops, which causes delays. And their businesses are often labelled as ‘more risky’.

This tends to lead to tougher negotiations with investors which also leaves female founders with less equity, based on a discounted company valuation (compared to their male peers).

Why we need female angel investors

Women who invest in female-led innovation share a lived experience. Female founders have less need to educate them on a market or product which is outside the frame of reference for the male investor.

Discussing the menopause or breast pumps or the pelvic floor does not seem alien, nor does it need to be uncomfortable or dismissed as a market which is ‘too niche’.

Women who invest are identifying underestimated markets and funding female founders who have been ignored by the traditional investor market for too long.

Negotiating with a female investor who appreciates the potential in an underserved market is also likely to leave the female founder better off; the deal terms are based on a fair (not gender-discounted) company valuation.

We also know women investors tend to be more meticulous in their research. They will spend more time evaluating an opportunity or startup before they make a decision to invest. But once they do, they are committed and invest for the long-term.

As more women invest in the startup ecosystem, female founders will have access to a stronger and more diverse network, access to capital, at better terms, in less time.

What next? (Re) listen to interviews on The Purse Podcast:

* #56: Investing in the North: female angel investing and female founders with Jordan Dargue

* #58: UK female entrepreneurship and The Gender Index with Jill Pay

* #66: How more women can start to invest in female-led startups with Gillian Fleming

News in Brief

Financial news

* Dow Jones fell to its lowest point since the earliest weeks of the pandemic, plunging <30k for second time in 2022. S&P500 is a better way to track the stock market but the Dow retains a wide following & influences the public's perception of the economy.

* The US Federal Reserve has raised interest rates for the third time by 0.75%. And Jay Powell has not ruled out the US going into a recession.

* Traders purchased downside options protection at a record pace on Friday as psychology turns increasingly despondent. Overall volume in put options surged to highest level ever. ‘Fear clearly arrived,’ says Alon Rosin at Oppenheimer.

* Euro plunges to 20 year low after US central bank Fed pushes ahead with bumper interest rate hike as it steps up inflation fight.

* Bank of England (BoE) raises interest rates by 0.5% to 2.25%. And the UK may already be in recession.

* Pound plunges after Liz Truss’s government has set out the most radical package of tax cuts for Britain since 1972.

* UK’s biggest tax cuts since 1972 trigger crash in bonds. 5 year gilt yields jump >50bps, biggest daily jump on record.

* According to the Bank of America (BoA): bond losses in 2022 are the greatest since 1949 (Marshall Plan), 1931 (Credit-Anstalt), 1920 (Treaty of Versailles).

Crypto: bitcoin, ethereum, DeFi & NFTs

* Crypto outperforms stocks for a change as correlation breaks. Bitcoin has been trading in lockstep with riskier assets (trading at $19,000+) And ether had slumped a much as 20% since software upgrade (trading at $1330+). Bitcoin has dropped 61% and ether has dropped 65% so far in 2022.

* Miners sold nearly 15,000 ethereum leading up to the merge. Ethereum miners appear to have cashed in big leading up to the network’s highly-anticipated merge event last week.

* The UK introduces bill to make crypto seizures ‘easier and quicker’. The Economic Crime and Corporate Transparency bill modernies existing legislation to counter new forms of money laundering and cyber crime.

Coffee Break? Read This

* (UK) Mini-budget: what it means for you and your finances

* Stop feeling guilty about delegating

* Designing an inclusive metaverse

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 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #131 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we highlight Ray Dalio’s Linkedin post where he calculates that the US Federal Reserve will have to raise interest rates to at least 4.5% in order to get inflation under control. This will have an impact on equities and the economy.

Meanwhile economists believe that Europe and the UK will tip into a recession in Q4 of this year. The Bank of England (BoE) is expected to announce yet another interest rate hike this week to 2.25-2.5%.

Don’t forget to listen to The Purse Podcast interview with Anna Poberezhna. She is a sustainable development and technology entrepreneur and the founder of ClearHub. We talk about cleantech, regenerative economies and investing for net positive outcomes.

***

And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Ray Dalio: rising interest rates and its impact on US equities and the economy

Are investors too complacent about inflation?

Ray Dalio, the billionaire founder of Bridgewater Associates LP, on Tuesday shared a gloomy outlook for US equities and the economy on Linkedin.

Inflation continues to rise and according to Dalio ‘..it looks like interest rates will have to rise a lot (toward the higher end of the 4.5% to 6% range)…This will bring private sector credit growth down, which will bring private sector spending and, hence, the economy down with it.’

An increase in rates to 4.5% (from the current range of 2.25% to 2.5%) ‘would lead to a plunge of around 20% in equity prices based on the present value discount effect’. In addition to that, Dalio estimates a 10% negative impact from declining incomes.

Dalio also stated that investors may be too complacent about long-term inflation. Bond traders are expecting an average annual inflation rate of 2.6% over the next decade, but he estimates that inflation will rise to around 4.5% to 5%. And with economic shocks, it may be even significantly higher.

As reported by Bloomberg, investors who are speculating that the Fed will tip the economy into recession next year in the fight to curb inflation, already see policy makers easing rates in the later stages of 2023.

Meanwhile, Europe and the UK is expected to tip into recession in Q4 (Oct-Dec), according to some economists, as per the Financial Times.

On Wednesday this week, the market is pricing in the Bank of England (BoE) raising interest rates by 0.5%-0.75% in the UK. This will take the base rate from 1.75% to 2.25% or 2.5% respectively, matching the Fed.

Sterling has been one of the worst performing major currencies this year as investors are anxious about inflation, the economic outlook, and political uncertainty.

And the S&P 500 is heading for its biggest annual loss since 2008, while Treasuries have suffered one of their worst beatings in decades, as reported by Bloomberg.

What next? (Re) Listen to:

* Rising inflation and the cost of living crisis on The Purse Podcast with Shaun Richards

* The markets today, how to think about a difficult or bear market and what are European investors doing on The Purse Podcast with Rebecca Chesworth

* Inflation, stagflation and are we headed for a recession on The Purse Podcast with Vicky Pryce

News in Brief

Financial news

* Fed to keep interest rates above 4% beyond 2023, economists predict. FT-IGM Survey forecasts central bank will prolong its aggressive campaign against decades-high inflation.

* US inflation shows persistent US retail inflation with acceleration at August core. Headline drops less than forecast to 8.3%, while Core CPI rose to 6.3%.

* Markets roiled by inflation leave investors with nowhere to hide: S&P 500 tumbled 5% this week, down 18% ytd. BBG commodity index has plunged 3% since Tuesday. Treasury yields climbed, pushing US government debt to loss of >11% year to date, worst since BBG index starts in 1973.

* Tech selloff on Tueday has been particularly costly for Apple. World’s most-valuable comp lost $154bn in market value - a wipeout that ranks among top 10 worst single-day market value losses in US stock market history. That’s more than market cap of ~90% of S&P 500 comps.

* Nasdaq 100 plunges 5.8% for worst week since January as investors learn that there is such a thing as time value of money.

* To put things into perspective: in a high-inflationary world, gold has now fallen into a bear market. The bullion price falls with the rise in real interest rates.

* UK consumer price index (CPI) inflation fell to 9.9% in the 12 months to August, according to the Office for National Statistics (ONS) on Wednesday.

* FTSE 100 hit by growth concerns as the pound sinks as UK retail sales crumble. Concerns that the UK is headed for a recession intensifies.

* 30 years after the Pound was forced out of the European Monetary Mechanism, UK currency slides to its weakest level in almost four decades as mounting evidence of a UK recession combines with rising Dollar. The Pound has fallen around 16% this year.

* US mortgage rates top 6% for the first time since the 2008 Great Financial Crisis. A year ago, they were less than half that. For home buyers, that can add up to hundreds more dollars on monthly payments.

Crypto: bitcoin, ethereum, DeFi & NFTs

* The Ethereum network smoothly transitioned to proof-of-stake, but its native cryptocurrency depreciated more than most leading coins. ETH is trading at circa $1,426, down 17% over the last seven days. It took the biggest losses among the top thirty cryptocurrencies by market capitalisation this week. (Read more: What the merge means).

* After Ethereum, the second biggest losses—of a little over 10%—were posted by Near Protocol (NEAR), which trades at $4.24; Avalanche dropped to $18.06, and Polkadot fell to $6.87, all of which are so-called “Ethereum killers," aka layer-1 blockchains with high-functionality smart contracts.

* Market leader Bitcoin (BTC) also fell this week. BTC is trading approximately is trading 7% lower than it was last week, hovering at $20,000 at the time of writing. 

* ETH staking could trigger securities laws. Staking is 1 of 2 ways in which crypto networks verify transactions. It allows investors to lock up their tokens for specified amount of time to receive bond-like return. Issuers stocks & bonds required to disclosures with SEC since 1930s.

* Following U.S. President Biden’s executive order, the White House published a framework for CBDC development and strict regulation of the ecosystem.

The Purse Podcast

We cover the following in our conversation:

* Cleantech & why should we care?

* Underlying values & principles in the industry

* Regenerative economies

* Investing for net positive outcomes

* And more

Please enjoy! Listen on Apple Podcasts and Spotify+

Coffee Break? Read This

* What The Merge means (Ethereum)

* Research: Women score higher than men in most leadership skills

* 3 workplace biases that derail mid-career women

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 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #130 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we spotlight our interview with Patience Marime-Ball and Ruth Shaber MD.

We talk about their new book: The XX Edge: Unlocking higher returns and lower risk; why women need to take centre stage in financial decision making and investing, how women invest and how this leads to better performance.

Listen to the full interview on The Purse Podcast here.

And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

XX edge: women as decision makers and investors

We interviewed Patience Marime-Ball and Ruth Shaber MD on The Purse Podcast about their new book: The XX Edge: Unlocking higher returns and lower risk.

We interviewed Patience Marime-Ball and Ruth Shaber MD on The Purse Podcast about their new book: The XX Edge: Unlocking higher returns and lower risk.

Patience Marime-Ball has more than two decades of investment experience across capital markets, including debt and equity financing, large scale infrastructure, distressed assets, as well as venture stage opportunities.

Ruth Shaber MD is the founder and president of the Tara Health Foundation, which promotes health, well-being, and opportunity for women and girls through innovative evidence-informed programs. She is also the co-founder and board chair of Rhia Ventures.

We talk about why women need to take centre stage in financial decision making and investing, how women invest, why investing in female led innovation is key, and how we can put more money into the hands of women in order to drive better outcomes and create more wealth for women.

Here is a short extract from the interview (we have edited down the response for ease of reading only):

Question: …if more women and when more women have more capital, access to more money and they're allocating it and they're allocating it to female founders, female scientists, will we see women asking for more and getting it?

Patience’s answer:

One:

I think sometimes women ask for less because there's a belief that they will not get it anyway…if I ask more, I'm not going get it anyway… so I will ask for what I believe the men on the other side of the decision table is going to give me.

But I think what's really important is that when women ask for more, the companies they build are likely to address more challenges because we know that women have the sensibilities, the long view, the risk awareness, as well as the collaborative leadership style.

They're also likely to allocate into differentiated opportunities; opportunities that may not be necessarily visible. So what you have is the opportunity for getting more profits out of solutions and investments that are not mainstream.

So you're able to pick up on returns that otherwise would not be visible in the more mainstream decision making rooms.

Two:

What you're going to realise is that you have an opportunity to grow the pie. When you have more women in these decision making rooms, what you will get in return is better performance on your portfolio.

From picking up returns from undervalued opportunities, differentiated opportunities, opportunities that are doing more than one thing at the same time, really driving solutions to today's pressing problems and all of those things.

So you will get better returns and you will absolutely have better risk mitigation as well. And this grows the pie.

That's from an investment perspective.

In 2015, McKinsey issued a study that demonstrated this. They looked at 95 countries and if each country worked towards bringing women into full employment, giving them opportunities similar to everyone else, and those full opportunities would include entrepreneurship and access to funding, the global economy would add $25 trillion between 2015 and 2025.

And even if you took a more conservative view of this opportunity …you would have added $12 trillion to global GDP.

That's huge.

That's an opportunity that's being ignored…if we don't bring women into decision making rooms..

***

Listen to the full interview on The Purse Podcast with Patience Marime-Ball and Ruth Shaber MD.

News in Brief

Financial news

* S&P 500 gained 3.7% over holiday-shortened week. While Fed expectations grew more hawkish, swaps now pricing +72 basis points for September, markets are optimistic that the Central bank can restore price stability without derailing growth.

* Energy prices continue to fall as EU Energy Ministers asked the Commission to come up with emergency liquidity measures to help strained energy markets as well as severing the link between expensive gas and power prices. Gas drops 7%.

* The European Central Bank (ECB) new inflation projections are shocking: 8.1% this year, 5.5% in 2023 and 2.3% in 2024, miles away from the 2% target they want to hit in the medium term. ECB raises growth outlook for this year, but slashes outlook for 2023 & 2024.

* ECB hikes interest rates by record 75 basis points as expected. Expects to raise rates further over next meetings.

* On Wednesday, the Pound briefly dropped to lowest level vs the Dollar since 1985. Pound now down 15% year-to-date.

* Liz Truss, UK’s new Prime Minister, to freeze energy bills at £2,500 a year average, funded by borrowing.

Crypto: bitcoin, ethereum, DeFi & NFTs

* After dipping below $19,000 at the start of the week, bitcoin then enjoyed a steady 7.3%+ recovery over the last seven days and trades for $21,600+

* The Bloomberg Crypto Outlook Report explains changes in the Fed’s tight monetary policy can result in rising prices for bitcoin. The report cites bitcoin’s dwindling supply as the reason for its likely increase in value over time.

* Ethereum, rallied harder just days before the Ethereum merge event to proof of stake. It shot up 11%+ over the week and is currently worth $1,739+

* Several so-called “Ethereum killers," aka layer-1 blockchains with high-functionality smart contracts, enjoyed notable rallies too: Cardano (ADA) blew up 9.4% to hit 51 cents, Solana (SOL) grew 11.4% and trades for $35, Avalanche (avax) rose 8% to $20.35, and NEAR Protocol surged 13% to $4.71.

* Ethereum co-founder Vitalik Buterin gave two reasons why he’s concerned for Bitcoin’s long-term health. He pointed to issues related to transaction fees and argued that proof of stake is more efficient.

* MicroStrategy says it may buy more bitcoin in stock ale filing. Firm plans to sell as much as $500m in Class A shares.

* The British parliament had its first crypto debate on Wednesday. The UK wants to "become the country of choice for those looking to create, innovate and build in the crypto space," according to Richard Fuller, the Economic Secretary to the Treasury.

The Purse Podcast

We cover the following in our conversation:

* Why women need to take centre stage in financial decision making and investing & how women invest

* Why investing in female led innovation is key

* How we can put more money into the hands of women in order to drive better outcomes and create more wealth for women.

Please enjoy! Listen on Apple Podcasts and Spotify+.

Coffee Break? Read This

* Be intentional about how you spend your time off

* Stop worrying what other people think of you

* UK in mourning faces hard times without comfort of its Queen

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 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #129 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we spotlight our interview with Rebecca Chesworth who is the Senior Equities Strategist at State Street Global Advisors.

We talk about the uncertain market, the outlook for the rest of 2022 and for 2023 and what actions European investors are taking.

We highlight Rebecca’s response (in this newletter) to our question about how you should be thinking about investing at this time?

Listen to the full interview here.

And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

And we are taking a 2 week break-so see you in early September! In the meantime, you can tweet me @janicka or drop me an email: [email protected].

Until then,

Jana

An uncertain market: how should you be thinking about investing at this time?

Rebecca Chesworth, Senior Equities Strategist at State Street Global Advisors was interviewed on The Purse Podcast-we share an extract.

We interviewed Rebecca Chesworth, who is a lead strategist on sectors and ESG for SPDR ETFs at State Street Global Advisors on The Purse Podcast.

We talk about what is happening in the market today, how to think about a difficult or bear market, the outlook for the rest of 2022 and for 2023, what actions are European investors taking and how should you be thinking about investing at this time?

Here is a short extract from the interview (we have edited down the response for ease of reading only):

Question: If you're a relatively new or nervous investor -how should you be thinking about investing at this time?

Rebecca’s answer:

So they're thinking about inflation. They're thinking about how that cost of living crisis happens.

I think ESG is still important and we will still see investors buying ESG funds, but that has taken somewhat of a backseat for the last couple of months. Now we are seeing investors taking action buying defensive.

This is buying the healthcare sector, which would include pharmaceutical companies, the food producers, brewing companies, for example, food retailers. These are some of the high street names that we'd know well.

Gold has been bought in the form of funds and the area of the market I work in, which is ETFs (exchange traded funds).

ETFs have been benefiting in this environment because it is a relatively low cost instrument. It’s easy to trade a lot of these type of assets. Whether you are buying a sector or you are buying gold, or you are buying a fund that has dividends in it, investors have been buying through ETFs.

One figure I read this morning was that $500bn dollars (year to date) has gone into ETFs. Even though the market has been all over the place, we know that investors are still buying.

Another way of playing this market is not just to look at stocks or sectors, but themes ie things that could be interesting in the future, like clean energy or artificial intelligence- they are the ones that I quite often get questioned about as well.

And take the chance to learn. There's always the chance to learn. And make sure you know what you are buying.

The worst thing you could do, on a market like we have seen in the last week or two, would be to run in. The reason why that's a bad idea is you're not going to know what you're buying or why you're buying it.

You want to pause and take a deep breath. And ask: what do I want to buy? How am I going to do it?

If I'm going to buy a fund, which is what I'd say most entry level investors are doing so they might be buying a mutual fund or an ETF, what country do I want to be invested in? Or what sector do I want to be an energy or financials?

What style do I want to be: in growth companies or in value companies? And then they may want to think about do I want to be active or passive?

Passive would mean that I'm just going to buy a fund, which completely matches the index. I want to buy the FTSE 100, because I know it will go up at the same rate as the top 100 companies in the UK.

An active fund, by comparison, would be trying to find a fund manager that would then try to beat that. There is nothing wrong with that. And a lot of people make a good living from that, but you have to know that that's why you are doing it. And then you have to know that their ability to beat the market will continue and that you are not paying too much for an active fund.

And remember to check what fees you are paying and then you have to think about risk.

If you were new to investing and relatively young, then the old age adage goes that you would have more equities because these are more risky, but could give you more return in the long term.

If you were closer to retirement, you might go into something safer, like corporate or government bonds…

Listen to the full interview on The Purse Podcast with Rebecca Chesworth.

News in Brief

Financial news

* S&P 500 snaps 4-week-long rally, dropped 1.2% this week on persistent inflationary pressures (especially in Europe), ongoing corporate margin headwinds, a tepid growth outlook in China, and complacent investor psychology.

* Bank of America (BoA) Fund Manager Survey shows biggest tail risk is inflation staying high, while the catalyst for a Fed pivot is seen as US PCE inflation below 4%.

* Inflation outlook hasn’t improved since ECB raised rates by 50bps in July, Exec Board member Isabel Schnabel said, suggesting that another 50bps hike may be coming next month.

* Europe is lurching into an energy crisis: German and French electricity prices keep climbing, hit fresh records.

* UK inflation hits 10.1%, driven by soaring food and fuel prices. ONS July figure is only fourth time in 70 years that inflation has breached 10%. And a 13% inflation peak looks optimistic.

* UK consumer confidence weaker than during major recessions. Monthly look finds deepening pessimism about personal finances and prospects for the economy.

* ‘Big Short’ investor Michael Burry dumps stock portfolio after market crash warnings to just 1: private-prison operator Geo Group. Scion sold off its long positions on 11 comps during Q2, incl bullish bets on Alphabet, Meta, Bristol-Meyers Squibb & Nexsta.

Crypto: bitcoin, ethereum, DeFi & NFTs

* The total crypto market cap fell almost as low as $1trn. $210 million of bitcoin long positions were liquidated on Friday as the crypto markets fell sharply.

* Sudden crypto market drop ends bitcoin to below $22,000; a more than three-week low, after a sudden sell-off. (See the current BTC price).

* Bitcoin sees its steepest decline in a month as hopes fade for a less hawkish Fed that suggested a dovish pivot remained unlikely to happen soon.

* Ether fell from $1,808 to $1,728 at the same time before staging a muted rebound. It had slipped again and ETH is trading at around $1,610+ (See the current ETH price).

* Coinbase and other crypto exchanges are pausing Ethereum and ERC-20 withdrawals and deposits during the merge.

* Dogecoin and Shiba Inu have made huge gains: Dogecoin is up about 16% this month while copy-cat shiba inu has gained 24%. For scale, bitcoin has only broken even; ether has popped 9%.

The Purse Podcast

We cover the following in our conversation:

* The economy and global markets

* How to think about a difficult or a bear market?

* The outlook for 2022 & 2023

* European investors

* And more..

Please enjoy! Listen on Apple Podcasts and Spotify+

Coffee Break? Read This

* What super productive people do differently

* What to actually do about an unequal partnership

* When women were warriors: the forgotten female leaders of the Middle Ages

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 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #128 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on why women should invest in crypto, starting with bitcoin and how to derisk their investment.

I published the original opinion piece back in October of last year just before the crypto market peaked in November. Since then, the change in the macro environment has meant that the crypto market has plummeted.

Sure, cryptocurrencies are a new asset class. They are volatile. And yes, we are still early. But there has never been a more urgent time to invest. And invest in crypto.

Especially if you consider what has happened to the global economy since the pandemic, the rise in the cost of living and what this means for your (fiat) money and your future wealth.

You can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Women: why invest in crypto and how to derisk your investment

Opinion piece: there has never been a more urgent time to invest

Note: we have updated this article originally published in The Purse newsletter on October 10, 2021.

Women invest in crypto.

And even though this trend is on the up and accelerating, based on the limited data we have, it is estimated that only 33%+ of women own crypto. However, women now outpace men as first-time purchasers of crypto.

Sure, cryptocurrencies are a new asset class. They are volatile. And yes, we are still early. But there has never been a more urgent time to invest. And invest in crypto.

Especially if you consider what has happened to the global economy since the pandemic, the legacy financial system and what this means for your (fiat) money and your future wealth.

Let’s put this in context: the global economy

The pandemic has been a disaster for the global economy.

The global markets crashed which is when the central banks and the government stepped in. In order to limit the damage to the economies around the world they:

* reduced interest rates (to zero or close to zero)

* introduced stimulus

* and started printing money.

Printing money essentially pumps liquidity into the markets (this avoids a financial crisis which buffers the economy).

Put another way, central banks buy government and corporate bonds from other financial companies and pension funds.

It’s no surprise that the level of debt has gone up dramatically since the pandemic although government have recently introduced quantitative tightening (QT). In the UK, debt-to-GDP ratio is now 99% (down from 106% in March 2021).

What governments around the world had not anticipated was for inflation to surge to the level it has and at such as rapid rate.

In the UK, inflation is at a 40 year high at 9.4% (CPI) and it is forecast to be 15%+ in early 2023. In the US, inflation has slowed marginally from 9.1% (CPI) to 8.5% in July.

What is unclear is how long inflation will remain at these elevated levels versus the target 2%. And just because inflation slows, does not mean that prices will fall.

Inflation is on the rise: what does this mean for your money?

Think about the rise in energy prices, the price of food, rising interest rates: the cost of living is going up.

The value of the money you earn is falling every month inflation rises. Simply put, you need to earn more money every month and every year just to keep up.

Are wages rising?

Marginally but the point is: wage growth is not outpacing inflation.

Plus you now have less money to buy assets such as equity in the FTSE 100 index or property. This has an impact on how much you can save and invest.

However, the rise in interest rates and cutting back on money printing, has meant that stock valuations and other assets have dropped in value making them cheaper to buy.

Since the peak of last year’s bull run, the most popular crypto tokens such as bitcoin and ether plummeted by roughly 70%.

Although we have seen a reverse of the downward trend in recent weeks, crypto is still relatively cheap, compared to its highs in November of last year.

Why invest in the crypto market: focus on bitcoin

The only way to protect your hard-earned money and future wealth, is if you invest in assets.

Assets is essentially deferred expenditure which goes up in value over a given time frame. The aim is to generate returns which outpace inflation and the expanding money supply, every year.

Bitcoin, the the world’s largest cryptocurrency…

… is regarded as a store of value. Its market capitalisation is at $490bn and is currently trading at $24,500+, down from its high of $69,000 in November.

Moreover, bitcoin’s average annualised return is 200%+ …

…which is more than 10 times higher than the second-ranked asset class.

Bitcoin is a decentralised and permissionless (blockchain) technology and global monetary network which can not be controlled by any one party, government or central bank.

Unlike fiat money, bitcoin has a limited supply of 21m coins. It is impossible for more bitcoin to be ‘printed’ once all the supply is available.

Therefore unlike fiat money, bitcoin is deflationary, not inflationary. As an investor, the money you allocate to bitcoin, over a longer term horizon, should go up in value.

The price predictions for bitcoin vary from $500,000 to $1m++ (some investors are even more bullish on the price).

Had the macroeconomic environment not changed so dramatically, it was anticipated that bitcoin would reach $100,000+ in the last bull run.

Bitcoin is the largest crypto market cap asset…

…and on-chain metrics indicate that bitcoin is undervalued.

Institutions continue to buy. In fact, the BlackRock, the largest asset manager in the world, has recently announced a partnership with Coinbase. This will allow BlackRock to offer its institutional investors access to crypto, and specifically bitcoin.

And let’s not forget that El Salvador adopted bitcoin as its legal tender, and Twitter enabled payments on its network (via bitcoin).

Despite its volatility, bitcoin is increasingly regarded as ‘sound money’ and a store of value by retail investors and institutions alike.

Bitcoin is often the first crypto asset investors buy…

..as it is regarded as the foundation asset. It is where investors start before they branch out into other crypto assets including ether (ETH), DeFi tokens (decentralised finance), NFTs and smart contract platforms like Solana and Polkadot, for example.

Being aware of the risks is crucial..

..as is how much money you will allocate over what period of time and when, if ever you decide to sell.

Short-term volatility in the market matters less if you are clear about your time horizon. And investing for the long-term (5 years+) is likely to generate higher returns, as the data already indicates.

The key skill for investing in the crypto market might be to HODL (ie do not sell) when the crypto market nose drives by, 60%-85%. This is not uncommon, especially if in a crypto bear market.

We have seen a 70% drop in the value of bitcoin and ether in the last 9+ months.

One way to derisk your investment…

… is if you apply the ‘dollar-cost averaging’ approach which simply means that you invest a set amount every month, regardless of the price.

When the price of the asset is low, you can afford to buy more than when the price is high. Over time, this will give you an average price you paid for the asset.

The other way to derisk your investment is to only allocate a small amount of your overall net worth, for example, this might be 1%-5% of your overall net worth.

It’s always a good idea to seek financial advice and ensure you don’t put all your ‘eggs into one basket’. But if you seek advice from financial experts, make sure they understand the crypto market too.

Diversification is important, however this is also a very personal decision. There are many investors who choose to focus on only one or two cryptocurrencies.

Start small

Do not assume that you must be able to afford one bitcoin in order to start investing. You can decide to invest as little as £20 or £100 per month.

If money is tight or you feel nervous about investing in crypto, start by investing $1 or £1 per month via a crypto exchange.

In fact, this is a great way to start. Once you invest, whatever the amount, you will pay more attention and learn as you go.

What next?

* Read the Bitcoin White Paper

* Read The Bitcoin Standard

* Check out crypto exchanges including Coinbase, Kraken, FTX.

Disclaimer: I invest in BTC, ETH, and other altcoins. Please do your own research. This article is for informational purposes only, we do not provide investment advice.

News in Brief

Financial news

* US stocks record best stretch of year, as inflation fear recedes. The S&P 500 rose 1.7% on Friday, taking its rise for the week to 3.3 percent and marking its fourth consecutive positive week, a feat it had not achieved since October.

* Nasdaq Composite exits bear market territory following US inflation data. Climbed 2.9% to 12854.80. Nasdaq Composite has now risen 20% from lows.

* US July Core Consumer prices rose 0.3% month-on-month versus an estimated 0.5% and headline year-on-year CPI rose 8.5% against 8.7% expectations.

* The Eurozone money markets now fully price in 50bps ECB rate hike in September.

* The FTSE 100 extended gains on Wednesday after key CPI US inflation data came in lower than expected and eased concerns over soaring prices. (The FTSE 100 rose 0.3%).

* UK economy contracted in second quarter amid cost of living crisis. (UK GDP fell 0.1% in second quarter). The Bank of England has already predicted the UK will enter a long recession from the final three months of this year, with the economy only growing again in the first quarter of 2024.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Bitcoin’s (BTC) price climbed 4% in the hours immediately after Wednesday morning’s release of the Consumer Price Index (CPI) before slowing later in the day. Currently bitcoin is trading at circa $24.5k+

* Ethereum leads the charge against Bitcoin, rising 61% since June — flippening price target is at $3,750.

* Ethereum’s big proof-of-stake blockchain switch could happen on September 15th. Ether is up and currently trading circa $1,900+

* Ethereum’s transaction fees are now at their lowest level since decentralised finance began to attract a significant user base during the ‘DeFi Summer’ of mid-2020.

* World’s largest asset manager BlackRock launched spot bitcoin private trust. After announcing it would enable bitcoin trading services, $10tn BlackRock now offers spot bitcoin exposure to institutions in a private trust.

Coffee Break? Read This

* Stop protecting ‘good guys’

* How abortion bans will stifle healthcare innovation

* Thanks to my feminist principles I kept my name after I married – until I met my mortgage advisor

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 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial advisor.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #127 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on rising interest rates and what this means for your money.

We know that women have been adversely affected by the pandemic, so what can they do to ensure they are outpacing the surge in inflation and protecting, if not growing, their net worth?

***

And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Interest rates are rising: what can you do?

Money tips for women during economic uncertainty and surging inflation.

Interest rates are rising, as central banks try to control surging inflation (well above the target 2%).

In the UK, inflation has risen to 9.4% (and could rise to 15%+ in early 2023). Whilst US inflation is almost as high at 9.1%.

Last week, the US Federal Reserve raised interest rates for the fourth time this year. And the Bank of England (BoE) introduced the biggest hike in 27 years to 1.75%.

Sharp rises in energy costs is pushing up the cost of living.

But according to Resolution Foundation (UK thinktank), price pressures were likely to be stronger and last longer than the BoE had previously forecast.

So what does this mean for women who have been hit hardest during the pandemic? And what can women do to protect, if not grow their money and net worth?

Take advantage of the labour market

Now is the time to return to the labour market or make moves. The labour market is hot as employers are hiring but struggle to find and retain talent.

As more roles remain open for longer, the balance has shifted in favour of the employee. Employers are having to work harder to retain employees and are more likely to agree to a salary increase.

Moreover, employers who are hiring are willing to offer more money plus benefits to attract the right talent.

Consider applying for roles with the aim of receiving more than one offer and at least a 20%+ increase on your current salary.

If you wish to stay with your employer, you will have leverage when you are ready to ask for more money and negotiate. If they refuse, you can decide to take up one of your job offers.

If you are a freelancer or a sole trader, consider raising your rates by 20%+. And look for new clients who can afford your rates and are comfortable paying them.

Remember to increase your savings rate and invest more of your money, on a monthly basis.

Cut down on expenses and pay off your debt

Now is a good time to review your spending habits. Identify expenditure which you can cut immediately.

Are you eating out or spending too much on your monthly gym subscription?

Try replacing an expensive spending habit and start tracking how much money you save a month. Better yet, direct the money saved towards paying off your (credit card) debt.

Check your progress every week or every month. And don’t forget to celebrate your new money habits.

Explore other options

Consider a balance transfer card with zero percent interest, depending on your situation. And search for savings accounts offering higher interest rates.

However, given the surge in inflation, remember it is costing you more ‘just to keep up.’ And a 1.25% interest rate on your savings account will not make up for rise in the cost of living.

Unless your salary goes up by 9.4%+ this year or you are generating at least 9.4%+ more income from your other sources or investments, you are losing ground.

Speak to a financial adviser for advice on how to ensure you can make up for the financial shortfall (if you have one).

For example, investing more of your monthly income into your pension can help. There may also be tax incentives you can take advantage of.

Consider investing a small percentage of your overall net worth into alternative investments on a regular basis. This can generate a higher return over a longer time period (within a balanced and diversified investment portfolio).

For example, consider investing in bitcoin via a crypto exchange.

Keep learning

Learning about how to manage your money and grow your net worth is a lifelong habit.

Start by reading about the economy and how this affects you and your money.

Commit to spending one hour a week to learning, reviewing your spending and checking in on your investments, including your pension.

Make changes as needed. And connect to other women and financial experts who can support you in your journey.

Know your worth, negotiate more money and grow your net worth.

What next? (Re) listen to The Purse Podcast:

* #37: Marriage and divorce: how to manage your money with Mary Waring

* #44: How women can build a healthy relationship with money with Dr. Kate Levinson

* #63: Inflation, stagflation and are we heading for a recession with Vicky Pryce

News in Brief

Financial news

* The markets see a 2-in-3 chance of a 75 basis points Fed hike in September after booming US jobs data.

* US 2 year yields jump after US jobs report showed a booming labour market that might prompt the Fed to raise rates more sharply.

* The Bank of England (BoE) launches biggest rate hike (+0.5ppts) in 27 years as inflation soars to 9.4%. The base rate is now 1.75%.

* UK inflation could reach 15% by start of 2023, experts say. Resolution Foundation says BoE likely to forecast higher and later peak. Energy bills across Great Britain are expected to soar to more than £3,000 a year in the final quarter of this year.

* Revenge of the ‘old world economy’: Exxon generated more free cash than Alphabet for the first time since 2018. Exxon is number 3 in the S&P 500 behind Apple & Microsoft. Chevron jumped up in the ranks with cash inflow to number 5.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Bitcoin reverses course, pushes higher, $21k is ‘point of control’. Bitcoin rebounded on Wednesday, advancing 1.7% to above $23,300, ending a streak of five consecutive negative days. (See the current bitcoin price).

* Citi report: Ethereum will be both yield-bearing and deflationary, therefore less likely to be the blockchain with the highest throughput. Given its ‘enhanced store-of-value properties,’ it is more likely to be where a growing amount of total value locked is secured and transacted, the note said. (See current ether price).

* Solana's SOL token holds price support despite hack: early Wednesday, an unknown attacker drained at least $5m of SOL and other tokens from Solana digital wallets. However, SOL held on to a critical support level.

* Susan Miller breaks into NFTs: The astrologer’s zodiac-themed non-fungible token (NFT) collection and token-gated Discord channel is her first venture into Web3. The collection of 12,000 digital profile picture (PFP) collectibles will be released on the Polygon blockchain on Wednesday.

* Coinbase selected by BlackRock; provide Aladdin clients access to crypto trading and custody via Coinbase Prime.

Coffee Break? Read This

* Men, Stop Calling Yourselves Allies. Act Like One.

* 6 strategies that will make you a better reader and person

* For women, finding time to exercise is the first hurdle

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 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #126 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on a new women-led fund and network called Coalition which is designed to increase diversity on cap tables and help founders access the best talent in tech.

Don’t forget to listen to The Purse Podcast interview with Gillian Fleming who is Founding Director and CEO of Mint Ventures, an angel group focused on investing in women led and diverse teams with a social, ethical or environmental purpose.

***

And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Coalition fund and network: women as operators and investors

Coalition is a women-led fund and network designed to increase diversity.

The Coalition, a (US based) women-led fund and network, has recently launched publicly, designed to increase diversity on cap tables and help founders access some of the best talent in tech, as reported by TechCrunch.

The fund is a $12.5m investment vehicle with investors including the founders of Glossier and Chief, as well as senior executives at startups such as Stripe and Maven.

Investors in the debut fund include General Catalyst, Kleiner Perkins, Lux Capital, Cowboy Ventures, Homebrew, BoxGroup, Lowercarbon Capital and Thrive Capital.

Beyond a focus on diversity, the fund has introduced a new economic model to help bring diverse operators into deals at scale:

* The firm struck a deal with two LPs ie General Catalyst (GC) and Thrive-which introduce a founder seeking specific operator expertise.

* The Coalition fund surfaces and vets relevant operator profiles and increasingly via their operator network.

* When a match is made ie the founder and operator agree to work together, ‘GC or Thrive carves out a portion of their firm’s upside in that specific investment for the operator, in exchange for advisory support’. This is the equivalent of a meaningful angel check in the most recent round.

* The GC and Thrive partnership is also a way to get people from diverse backgrounds onto cap tables, without needing to invest their own money. Operators, especially from underrepresented backgrounds do not always have money to angel invest or set up a rolling fund.

Therefore, founders can turn to Coalition for capital or the network at no further dilution. The operator network is also a way for smart folks to get into venture, connect to the (startup) investment ecosystem and take a more ‘portfolio approach’ to their career.

Given the check size (their sweet spot is $200,000 at the seed stage), the Coalition almost always has to invest alongside a lead investor. Therefore collaboration with other investors such as GC and Thrive Capital is key.

What next? (Re) listen to The Purse Podcast:

* #46: Mobilising investment into women founded startups and why women investors are key with Shelly Porges

* #49: Investing in a women-focused fund with Ann Badillo

News in Brief

Financial news

* Nasdaq China Index dropped >3% bucking pos US tech performance as sentiment is starting to sour again given ongoing Covid limitations, muted stimulus actions & ongoing accounting standoff between Beijing & Washington.

* Shock July stock rally- Nasdaq 100 jumped 12.6%, S&P 500 9.1% – was a monster the Fed may regret seeing. Financial conditions have eased despite supersized Fed hikes. The Fed may have to ‘bring the party to a halt’ very soon.

* The Fed unanimously raises its rate by 75 bps to range of 2.25%-2.5%, in line with expectations and anticipates the further increases in the target rate “will be appropriate.” Fed's balance-sheet reduction process is proceeding as planned with caps on Treasury roll-off doubling to $60bn/mth.

* The US economy is in technical recession as GDP shrinks for a second quarter. Q2 GDP fell at a 0.9% annualised rate as inventories, residential investment subtract from growth after a 1.6% decline in the first three months of the year.

* Meta has dropped out of Top 10 most valuable US companie and is now number 11, behind AAPL, MSFT, GOOGL, AMZN, TSLA, BRK, UNH, JNJ, V, NVDA. There used to be 5 Big Tech companies but there are now only 4 (AAPL, AMZN, GOOGL, MSFT all have >$1tn mkt caps while META <$440bn.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Crypto traders split on the US Fed’s rate hike's impact on Bitcoin. The U.S. central bank has raised rates by 150 bps since March, injecting volatility into asset markets. Some analysts expect BTC to stay resilient after Wednesday's expected hike. (See current bitcoin price).

* Report: El Salvador's finance Minister says Bitcoin adoption is 'gaining ground'. Alejandro Zelaya said bitcoin adoption has been beneficial to El Salvador's unbanked population.

* Ethereum’s final testnet Merge set for early August. Goerli will be the network’s third and final testnet before the network's transition to proof of stake, which is scheduled for mid-September. (See current ether price).

* Upgrade still ‘not priced in’- ethereum co-founder issues shock price prediction.

* Interest in ether options rises to record as traders bet on 'Merge'. "A few hedge fund names have been large buyers of the ETH calls," one trading firm noted.

The Purse Podcast

We cover the following in our conversation:

* Female entrepreneurship in the UK/Scotland

* Women founders-access to capital

* Female angel investors

* How to start angel investing

* And more

Please enjoy! Listen on Apple Podcasts & Spotify+

Coffee Break? Read This

* Three ways to innovate in a downturn

* How to pace yourself at work while pregnant

* Why women and weights are a healthy fit

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 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #125 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on research about why women who are married or in a couple tend to save less than men (and also women and men who are single).

We’ve created a brief list of things you can do today to change that.

And don’t forget, you can (re) listen to The Purse Podcast interview with Heather McGregor and Barbara Huson where we talk about how to shift your relationship with money and grow your net worth.

***

And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Why being in a couple can leave you with less savings (and what you can do about it)

What can women do to challenge gender norms when married or in a couple?

In the UK, the gender wealth gap is £15bn.

Many recognise the ‘motherhood penalty’, the gender pay gap and child gap as major contributing factors. But what is less known is that women tend to have less ambitious personal savings goals when married or in a couple. For women and men who are single, there is no gender difference in personal savings goals, as reported by The Converation.

Wait. Why?

Based on recent research, gender norms influence attitudes towards saving.

Women are often tasked with managing the household budget and are therefore more likely to focus on short-term financial goals.

Perhaps the anticipation of adverse events affecting their daily budget means that women (in a couple) choose modest personal savings goals and accessible financial products. For example, women prefer to put their money in a cash ISA vs a stocks and shares ISA.

In contrast, men in couples tend to focus on long-term financial goals and choose financial products designed for long-term savings habits. For example, self-invested personal pensions provide more control over what you invest and when.

Men are often assigned long-term investing tasks and this encourages them to focus on long-term wealth growth and set more ambitious personal savings goals.

These findings are only intensified in more traditional households where the man is the breadwinner.

Context is key

Therefore exploring the context within which financial decisions are made is vital.

It is important for women (and men) to recognise how gender norms impact financial decision making and actively plan to address this.

Women are still socialised to believe ‘they are not good with money’. And that their male partner will know more about money and how to invest it.

This perpetuates the stereotype and importantly, it does not allow women to develop the skills they need in order to grow their long-term wealth.

Women often prioritise the needs of their family, children or their partner ahead of their own, which comes at a considerable financial cost: their net worth.

Very often women are time-poor as they shoulder the burden of household chores and childcare leaving limited time or headspace to focus on growing their long-term wealth.

This becomes a virtuous circle which is difficult to break. And women’s long-term (and short-term) financial security is compromised.

As 50% of marriages end in divorce and relationships can end, women are exposed to far greater financial risk throughout their lifetime than men, and especially as they get closer to retirement.

So what can women do? Here is a list to get you started…

* First of all, become aware that gender norms are likely to impact your net worth or your long-term wealth building (more than you realise). Learn about these gender norms.

* Commit to your personal long-term wealth building.

* Make sure you understand the long-term investing decisions your partner has made and continues to make. Get involved (if not already).

* How much are you spending vs saving (& investing per week/month).

* Calculate your net worth ie how much you own vs how much you owe. For example: find out how much you have in your pension vs how much (credit card) debt do you have? (Be clear on what this is for your partner & as a couple and for you personally).

* Talk to a financial councillor or find a financial adviser who can help you. Establish your financial goals based on what you want to achieve (financially). Ensure your personal savings goals are ambitious so you can start to invest more of your money on a weekly/monthly basis.

* Identify what (spending) habits need to change. How much time do you need to dedicate to learning about money & investing a week/month. And allocate time to review money & investing finances with your partner on a regular basis.

What next?

* (Re) Listen to The Purse Podcast interview with Heather McGregor about how to take charge of your money and invest for the long-term.

* (Re) Listen to The Purse Podcast interview with Barbara Huson on how to rewire for wealth and change your relationship with money.

News in Brief

Financial news

* The US Federal Reserve has already stopped the shrinking of the balance sheet. Fed balance sheet now equal to 36.5%+ of US's GDP vs #ECB's 81.9% and BoJ's 135%.

* European Central Bank raises interest rates for first time in 11 years. Bank surprises markets with 0.5 percentage point rise as inflation reaches 8.6% in eurozone.

* Bank of England governor says half-point interest rate rise ‘on table’. Historic tightening may be needed to return UK’s 40-year high inflation rate to central bank’s 2% target.

* UK inflation hits fresh 40-year high of 9.4% and ‘could hit 12% in October’. The prospect of inflation hitting 12% this autumn is looming larger after dearer fuel and food pushed the official measure of the cost of living to a fresh 40-year high.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Digital assets have added nearly 16% to their collective capitaliation since last Friday, representing approximately $143bn in nominal value.

* Major cryptocurrencies gained on Friday with ether (ETH) breaking the $1,600 level amid a run-up in broader equity markets in Asia and Europe.

* Ether dominance rises as altcoins outperform bitcoin. Ether now makes up 18.7% of all cryptocurrencies, its highest point since May. Bitcoin dominance fell slightly, from 43.5% to 43.1%.

* Bitcoin short-seller profits jump by 50% in June amid meltdown. Short sellers target GBTC, BITO amid rout for cryptocurrencies. ETF tracking the inverse of Bitcoin futures has seen inflows.

* Tesla sold about 75% of its bitcoin to add $936m to balance sheet. Bloomberg Intelligence said July 15 that the quarterly results could include a bitcoin-related charge of about $740m.

Coffee Break? Read This

* Stop undervaluing exceptional women

* Male ‘biological clock’ can affect chances of birth more than was thought, study finds

* In praise of loud women – the joy and power of being noisy and female.

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 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #124 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we spotlight The Purse Podcast interview with Cindy Gallop.

Cindy updates us on her sextech startup, MakeLoveNotPorn (MLNP) and what her female founder journey has been like since January 2021.

We also ask Cindy to share her views on the overturning of Roe vs Wade.

Listen to the full interview here.

***

And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Sextech: the trillion dollar market opportunity, fundraising and the female founder journey

Cindy Gallop rejoins us on The Purse Podcast to talk about her startup and her female founder journey since January 2021.

We welcomed back Cindy Gallop on The Purse Podcast.

Cindy Gallop is the founder and CEO of MakeLoveNotPorn (MLNP) launched at TED 2009 – ‘Pro-sex. Pro-porn. Pro-knowing the difference’.

In 2013 she turned MLNP into the world’s first user-generated, human-curated social sex video-sharing platform, socialising and normalising sex in order to make it easier to talk about, to promote consent, communication, good sexual values and good sexual behaviour. MakeLoveNotPorn is spearheading the Social Sex Revolution (the revolutionary part isn’t the sex, but the social). Given the challenges Cindy has faced finding investors, she is raising the world’s first dedicated sextech fund, All the Sky Holdings.

She speaks at conferences globally and consults, describing her approach as ‘I like to blow shit up. I am the Michael Bay of business.’

We asked Cindy to talk about what’s changed in MLNP since January 2021 and what her female founder journey has been like.

Here is a short extract from the interview (we have edited down the response for ease of reading only):

Question: Have you seen a, a shift since January of last year (towards sextech & MLNP)? And why do you think that is?

Cindy’s response:

I've spent 13 years parallel passing two things: working to build MLNP and working to change the cultural and business context around it.

Because when you have a truly world changing startup, you have to change the world to fit it, not the other way around.

And the great thing is that I'm absolutely seeing all of that work pay off, especially because as you know, there are many other female sextech, femtech founders like me, dedicated to the same thing.

But the second thing that is especially encouraging is, I have had to operate a very different investor finding strategy to most founders.

And that is because in the conventional funding world ie venture capital, my biggest obstacle there is the social dynamic that I call ‘fear of what other people will think’ which operates around sex unlike any other area.

And in VC, there are too many stakeholders, too many partners, too many LPs ‘fear of what other people will think’ about investment choices runs rampant.

So I don't even go near that world myself. And what that obviously means is that when I decide to raise funding, I can't do the usual thing of right: let's do the road show, let's target these investors who are used to having founders pitching them one off the other.

So my approach is driven by my another challenge.

Which is that I absolutely know that my investors are out there and there are many of them. They are impossible to find by the usual means because they all have one thing in common:

your willingness to fund MLNP is entirely a function of your personal sexual journey. It is a function of your personal lens on sex and sexuality driven by your own experience.

And I have no way to research and target for that. Especially because sex is the one area where you cannot tell from the outside what anybody thinks on the inside.

The people who look like they would totally get it, don't. The people who look like complete prudes, do. And so my strategy has been- I put what I'm doing out there all the time.

I promote MLNP across all my social channels, I go on every podcast I'm invited to, because I have to rely on making synaptic connections that will draw those investors to me.

Now, this is a very long, slow, painful, and highly inefficient process. But the good news is that in the past couple of years, it's been working more and more.

I've had investors reach out to me out of the blue going: I saw your post about MLNP on LinkedIn, I'm intrigued, tell me more.

And by the way and I say this to all the founders out there: I am gobsmacked at how effective LinkedIn is for bringing incoming investor interest. You know, it is absolutely worth it.

So absolutely put what you're doing out there on LinkedIn, highlight the fact you're raising funding because I continue to get investors reaching out saying: oh, I saw you're raising funding, I'd like to talk.

And then the other thing that's been enormously helpful is a demonstration of something that I've had to say many times to reporters over the years, because I have regularly been called up by journalists who say: Cindy, I'm writing a piece about why investors won't fund sex: I'd love to interview you.

And my response is always: I will only agree to be interviewed if you change that headline. And I explain that when you run a headline that says why investors won't fund sextech, it makes investors feel enormously good about not funding sextech.

I will only agree to be interviewed if you will run a headline that says: the trillion dollar sector investors are missing out on!

And so I was very pleased when Sifted reached out to me and asked to interview me and said: Cindy, we'd like to interview you about all of the challenges you face raising funding. And I said: no, you wouldn't. And that is why I was thrilled last month to have Sifted run an interview with me where the headline was: Cindy Gallup on building the next sextech unicorn.

And that interview has brought me a tonne of incoming investor interests, which is fantastic.

So I'm feeling very optimistic and I am talking to all of those investors as we speak and we'll see what happens…

Listen to the full interview with Cindy Gallop here.

What next?

* (Re) Listen to the first interview with Cindy Gallop on The Purse Podcast in January 2021.

News in Brief

Financial news

* China growth crashes, putting GDP target out of reach. GDP disappoints as growth weakens to 0.4% in Q2, slowest since Pandemic and way below forecast of 1.2%. That means Beijing will likely miss its goal of 5.5% growth for the full year by a wide margin.

* The US Federal Reserve has already stopped the shrinking of the balance sheet. Total assets grew by $4bn the past week to $8.896tn. Fed balance sheet now equal to 36.5% of US's GDP vs #ECB's 81.9% and BoJ's 135%.

* US inflation hit 9.1% over the past year highest rate (40 year high) and way hotter than expected. Core CPI dropped to 5.9% vs 5.7% expected.

* The UK economy has surprised us with 0.5% growth in May, following April’s 0.2% decline (revised from a 0.3% drop).

* Average UK household £8,800 a year worse off than those in France or Germany.

Crypto: bitcoin, ethereum, DeFi & NFTs

* Although Bitcoin has dipped about 3.5% over the last seven days to approximately $20,831, Ethereum has added 11.1% over the same period, now trading approximately $1,357.

* 'Merge' rally pushed Ethereum almost to $1,400. The bullish momentum spilled over from Friday after an Ethereum dev release a timeline for the long-awaited ‘merge.’

* Investment bank JPMorgan estimates that the production cost to mine one Bitcoin has dropped from $24,000 at the start of June to just $13,000. According to the New York-based bank, Bitcoin’s bottom could very well be a lowly $13,000, marking a 45% drop from today’s prices.

* Russian President Vladimir Putin signed into law a national ban on using digital assets for payments, although it’s still possible to buy and hold cryptocurrencies.

* Celsius bankruptcy documents claim $1.2 billion balance sheet gap. As of July 10, the company held 410,421 staked ETH (stETH), and as a result, approximately $467 million of the Company’s ETH, based on the market value of ETH, is illiquid.

The Purse Podcast

We cover the following in our conversation:

* Sextech: the $1tn opportunity

* MLNP & raising $20m

* Female founders

* The overturning of Roe vs Wade

* And more

Please enjoy! Listen on Apple Podcasts & Spotify+

Coffee Break? Read This

* How fair is your workplace?

* The women who wish they weren’t mothers

* 6 signs you are overspending-and here are 4 tips for how to get it back in control

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 2022 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com