The Purse

Welcome to our #83 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on the increase in National Insurance Contributions (NICs) from next April and what impact this has on women?

And we consider whether we are in a ‘market bubble’. These are often difficult to understand and predict, however there are a number of indicators which can help guide our thinking.

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

And don’t forget to listen to The Purse Podcast interview with Gloria Feldt. We talk about women and power, women’s relationship with money, building wealth, female investors, investing in women, gender parity and more.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

NI increase: how does this impact women?

National Insurance Contributions (NIC) are due to increase from April 2022. What does this mean for women?

On Tuesday, UK’s Prime Minister Boris Johnson announced that National Insurance Contributions (NICs) would increase by 1.25% from April 2022. (Dividend tax rates will also go up by the same amount from the next tax year).

As reported by the Financial Times, the main rate of national insurance paid by employees has more than doubled since 1977, from 5.75% to 13.25% (as of April next year).

What are NICs?

National Insurance Contributions (NICs) are payments made on labour income. They are mandatory if you’re 16 or over and are either:

* an employee earning above £184 a week

* self-employed and making a profit of £6,515 or more a year

What does the NIC increase mean for women?

We know that women are exposed to more financial risk over the course of their lives.

On average, women earn less than men and have less money to invest. Women have more career interruptions, work in part-time or temporary employment and live longer than their male partner.

According to the latest Payspective salaries report 2021…

…the average salary in the UK for men is £33,923, compared to £27,981 for women.

The average is £31,461 which means that women earn 21% less income. Therefore even a (seemingly) small increase in NIC can have a significant impact on lower income earners.

Check for tax credits

As women take on the majority of child care and elderly care, they are entitled to tax credits. In other words, women can claim extra cash for this work.

The NIC increase can therefore be mitigated by women: (as per the FT Advisor):

* claiming their full entitlements

* ensure a full state pension

* checking their tax codes

* and pay more into a company pension scheme (as you get tax relief on pension contributions).

What next?

* Read the government information on National Insurance

* Find out about National Insurance Credits

* Check your National Insurance Record

News in Brief

Financial news

* The Fed balance rose by another $8.1bn to hit a record at $8.36tn as Jay Powell keeps printing money. The balance sheet us now equal to 36.8% of US's GDP vs ECB's 79.4% and BoJ's 133.5%.

* Warren Buffett’s global market indicator hits a record 142%: stocks are too expensive and could crash. (The indicator takes takes the combined market capitalisation of the world's publicly traded stocks, and divides it by global GDP).

* US: investment banks turn sour on US equity outlook. The spreading Delta virus, slowing global growth recovery or moves by central banks to exit pandemic-era stimulus programs all pose risks.

* The European Central Bank (ECB) will start slowing the pace of its pandemic bond-buying program in the final quarter of 2021 (but this isn’t a wind down of its stimulus). They have also left interest rates unchanged.

* Bank of England (BoE) governor says UK’s economic recovery is slowing. Supply chain disruption and staff shortages has hit the economy as it starts to ‘level off’.

* National Insurance contributions to rise from April 2022. Dividend tax rates will also rise by the same amount from the next tax year. The move is in a bid to help fund health and social care costs.

Crypto: bitcoin, ethereum & DeFi

* Bitcoin crashes 10% as El Salvador’s debut signals to sell. See current price.

* El Salvador purchases first 200 Bitcoin, President Bukele confirmed on Tuesday. Bitcoin jumped to $52,000. El Salvador is the first country in the world to recognise Bitcoin as legal tender.

* Bitcoin, Ethereum and Solana prices slip (and so does the S&P 500).

* Solana flips XRP, as SOL outpaces Bitcoin, Ethereum crash recovery. SOL is currently trading $182.44. Solana has steadily surged in value over the last month, up 351% over the past 30 days according to CoinGecko.

* Ethereum transaction fees fall while NFT market tumbles. The average cost of a transaction on Ethereum is right now is $12.2, according to Etherscan (that’s a significant decline from averages $59 on September 11 just four days ago).

* OpenSea’s NFT volume drops 50% after monumental surge in August. Sales volume surpassed $4B in August; an industry-record.

Explainer: are we in a market bubble?

Market bubbles are difficult to understand and predict

Warren Buffett’s global market indicator has hit a record 142%.

As reported by Markets Insider, the global version of the ‘Buffett Indicator’ takes the combined market capitalisation of the world's publicly traded stocks, and divides it by global GDP. Above 100%, the global stock market is overvalued relative to the world economy (ie we are in a ‘market bubble’).

According to Buffett, buying stocks at 70% or 80% is likely to pay off for investors, but if the ratio approaches 200%, investing becomes very risky (the US stock market reading is at 208%).

However, because the indicator compares the current value of the stock market to past GDP, the ratio may be misleading.

Governments around the world have been propping up the markets and economies by printing money and injecting stimulus. (This has artificially inflated (or distorted) the market).

Given how high the market valuations of the global stock market, does this mean we are in a market bubble and a market crash is imminent?

Enter the ‘boom-bust-rebound’ model

As reported by the Financial Times, the famed economist, Robert Shiller noted in 2013: ‘history does not generally support the idea of bubbles that catastrophically and irrevocably burst’.

Shiller argued that although stock market booms ended abruptly in 1929, 2000 and 2007, these booms ‘reflated again in 1933-37, 2003-2007, and 2009-present respectively’.

Although many economists argue that market bubbles ‘end in tears’ and they are incredibly difficult to time or predict, there is new evidence by Chodorow-Reich and his co-authors, Adam Guren and Timothy McQuade which suggests a ‘boom-bust rebound’ model.

Using the US housing market as an example, they argue that although in 2006, house prices were above the long-term trend, the US market rebound after the crash of 2008/9 because the fundamentals had changed.

For example, US cities were becoming more attractive and technology has played a big part in that.

As more people move to a city, the demand for housing goes up which in turn drives up the price of homes (as supply is limited or can not meet demand). The housing market continues to go up because more people want to (or need to) live in cities.

Have the fundamentals changed in the global stock market?

According to Chodorow-Reich’s version of the 2007 housing boom, the cycle of ‘over-optimism’ can get started ‘from an underlying change for the better’, as reported by the Financial Times.

If we apply this thinking to technology stocks, although they were hugely overvalued in 2000, investors were not wrong about the impact of technology on business and society at large.

What do long-term interest rates have to do with it?

If long term interest rates drop, future cash flows become more valuable. And as less capital is required to launch businesses online, companies generate a better return on investment. However, investing in stocks is likely to generate lower returns.

But according to Shiller…

….it depends whether the comparison is being made to historic prices or the relative bond yield.

Simply put, market bubbles are difficult to understand and predict.

The Purse Podcast

Women, money and power

We cover the following in our conversation:

* Women and power

* Women’s relationship with money

* Building wealth

* Female investors

* Investing in women

* Gender parity

* and more!

Listen on all podcasting channels including Spotify and iTunes.

Coffee Break? Read This

* Feel like don’t fit in? Here’s how to find where you truly belong

* Collaboration overload is sinking productivity

* Why New York City is a top spot for female founders in 2021

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

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 #82 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on a recent survey by CNBC and Acorn: Invest in You: Next Gen Investor, which has highlighted an age old problem: women invest less than men, although this is changing. We spotlight women investing in crypto and why black women in particular are still being left out.

And according to US investor Bill Gross, ‘bonds are trash’. This is very much in line with what US hedge fund billionaire, Ray Dalio said back in June. We explain why this is and what is likely to change.

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

Don’t forget to listen to The Purse Podcast interview with Judy Piatkus. We talk about how she built a global publishing brand, self-funding through growth, women’s relationship with money, angel investing, investing in women and conscious leadership.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Crypto: how women invest

What does the recent data suggest about how women invest?

Data is generally lacking about how women invest (across all ethnicities). However, in recent months, we have seen more surveys and reports regarding women investors and women investing in crypto.

And a recent survey (US) by CNBC and Acorn: Invest in You: Next Gen Investor has highlighted an age old problem: women invest less than men (although this is changing).

The survey found the following gender disparity in the ownership of assets:

* cryptocurrency (16% of men vs. 7% of women)

* exchange-traded funds (14% of men vs. 7% of women)

* individual stocks (40% of men vs. 24% of women)

* mutual funds (30% of men vs. 20% of women)

* real estate (36% of men vs. 30% of women)

* bonds (14% of men vs. 11% of women)

However, research published earlier this year…

…by Gemini (UK) suggests that investing in crypto is becoming more diverse, and specifically women are engaging as investors.

Out of the 13.5% of 2,000 respondents that are current or previous cryptocurrency investor, 41.6% were women. This represents a significant shift where women made up just 21%–22% of crypto investors.

And even though only 15% of Bitcoin traders are women, this is up from 10% last year.

In an interview, Gretchen Howard, the Chief Operating Officer of Robinhood (US investment platform), said that she has seen significant growth in the number of women customers in the last 2 years. This is a 369% increase year-on-year.

And, wait for it..

…the platform reported in March that 40% of its active female customers were trading crypto, a seven-fold increase over 2020.

But black women investors are being left out

Historically, black women have been excluded or marginalised by the financial services industry. And they have struggled with higher levels of student and personal debt.

Overall, black and hispanic women invest less than white women.

And according to the same CNBC and Acorn survey, just 4% of black women invest in crypto compared to 19% of white women.

This means that women, and especially black and hispanic women continue to miss out on a golden opportunity: to learn about ‘new money’, grow their net worth and build financial resilience.

What next?

* Listen to the podcast with Diana Biggs about bitcoin, ethereum and DeFi.

* Listen to the podcast with Marina Spindler about her report on ‘Women in Crypto’.

* Read about crypto investment platforms (such as Coinbase or Kraken) and how to open an account.

* Start small and start learning about the crypto market.

News in Brief

Financial news

* Delta variant knocks US consumer confidence to six-month low. Concerns arise over the pandemic and rising prices undermine the economic recovery.

* US job creation totalled 235,000 payrolls in August vs the median estimate of 733,000 added jobs. US job growth is slowing sharply due to the Delta wave and reviving economic restrictions.

* Eurozone inflation hits 10 year high (eg Germany is at 3.4% in August). This figure will be confirmed in a few weeks time. The European Central Bank (ECB), due to meet Sept. 9, is also expected to discuss the future of its asset purchase program.

* European stocks extend winning streak into seventh month. The index has surged by 18% so far this year, as the economic rebound, stimulus plans and ultra-loose monetary policy all boost shares.

* The FTSE 100 index gained around 1.25% during August, bouncing back after a small decline in July. The UK’s blue-chip stock index has recorded its best month since April.

* UK Chancellor, Rishi Sunak Rishi Sunak is set to scrap the so-called triple lock on annual increases to the U.K. state pension as soon as next week.

Crypto: bitcoin, ethereum & DeFi

* Bitcoin rose above $51,000 (Bitcoin is currently trading at circa $49.9K).

* Ethereum price spikes to 3-month high above $4,000. (Ethereum is currently trading at $3.8K)

* Solana's native sol token hit an all-time high of $150.6. Solana is the seventh largest cryptocurrency by market capitalisation and has now eclipsed Dogecoin’s market cap.

* Bitcoin miners brought in approximately $1.41bn in August (below the all-time peak of $1.75bn in March). This represents a month-over-month increase approximately 45% from July's $971.83m.

* Twitter could be adding Bitcoin as payment option for Tip Jar. The platform’s tipping service could be launched in May of 2022.

* Coinbase launches Ethereum staking (& earn rewards) for Britons and Germans. Coinbase has also removed the requirement to hold a balance of 32 ETH and the expertise needed to operate the ETH2 client software.

* Vitalik Buterin considers NFTs to be the most surprising use case for Ethereum.

* Fractionalized Doge NFT valued at $225 million after SushiSwap auction. The original Doge meme image became one of the highest valued NFTs. The auction raised 11,942 WETH (around $45m) from 1,796 buyers. (See NFT fractionalisation).

Are bonds trash?

Investor Bill Gross says that bonds are ‘investment garbage’. Why?

Investors buy bonds to limit the downside of investing in riskier (and more volatile) equities. Bonds are less risky, less volatile but they generate a lower return. They often balance an investment portfolio.

But according to Bill Gross (who co-founded Pacific Investment Management Co. in the 1970s and retired in 2019 in the US), as reported by Bloomberg, ‘bonds are trash’.

This is not unlike what Ray Dalio, the US billionaire hedge fund manager, expressed in June, when he said ‘I’d rather buy bitcoin than a bond’.

Why are ‘bonds trash’?

Government bonds are ‘investment garbage’ given their high prices and low yields, according to Bill Gross.

He says that investors in Treasuries (intermediate and long-term bonds) are likely to lose money.

Gross points out that given the US Federal Reserve will start tapering back its asset purchases (they will buy less bonds), raising interest rates may be the only option, which will drive bond yields up.

Bonds have an inverse relationship to interest rates

When the cost of borrowing rises or when interest rates rise, bond prices usually fall, and vice-versa.

Most bonds pay a fixed interest rate that becomes more attractive if interest rates fall, driving up demand and the price of the bond.

Conversely, if interest rates rise, investors will no longer prefer the lower fixed interest rate paid by a bond, resulting in a decline in its price.

Inflationary pressures

Ray Dalio points out that ‘inflationary pressures’ will also cause a change in ‘the amount that is in the hands of individuals’.

So whilst the value of cash (and bonds) is eroded, it could be good for assets such as real estate, stocks and cryptocurrencies (specifically bitcoin).

The Purse Podcast

How a one-woman startup built a global publishing brand

We cover the following in our conversation:

* How Judy built her publishing business from the ground up

* Self-funding a business to growth 

* Women's relationship with money

* Financial independence

* Angel investing Investing in female led innovation  

* Building wealth

* Conscious leadership

* And Judy's book: Ahead of Her Time: how a one-woman startup became a global publishing brand.

Listen on all podcasting channels including Spotify, iTunes and Google Podcasts.

Coffee Break? Read This

* Boards needs real diversity, not tokenism

* In a distracted world, solitude is a competitive advantage.

* Work stress, sleeping disorders and fatigue ‘rising more sharply in women’.

* Pregnant women victims of microaggressions and discrimination at work, study finds

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

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 #81 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

It’s good to be back!

In this week’s newsletter, we highlight an ESG ETF created by State Street Global Advisors called SHE which gives investors exposure to companies with female leadership. We know that gender-diversity, especially at the decision-making level, drives better returns.

And we explain how central banks impact global markets and what this means for investors as they start to exit the policies they introduced to limit the economic damage due the pandemic.

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

Stay safe everyone & look after yourselves.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Investing in female leadership via an ETF

Investors can get exposure to companies with gender-diverse leadership via an ESG ETF.

Although women still represent a small percentage of CEOs, change is afoot as investors and regulators focus on the growing importance of governance and gender diversity for better returns.

Women now run..

.. 23 of the top 500 companies in the world, according to a yearly list compiled by Fortune.

Pressure is mounting on businesses to gender balance their C-Suite and leadership. The data shows gender-diverse companies, at the decision-making level, are more profitable and tend to be more sustainable.

SHE: investing in female leadership

State Street Global Advisors has created an ETF (exchange traded fund) called SHE which allows investors to back companies with the highest diversity amongst leadership positions.

An ETF is a basket of companies which matches the market or index benchmark eg the S&P 500 or FTSE 100. It can track an index, sector, commodity, or other asset and can be purchased or sold on a stock exchange the same as a share.

SHE follows an index that tracks large cap U.S. companies with gender diversity within the C-Suite and executive positions.

The benchmark pulls from the top 1,000 U.S. stocks by market capitalisation.

And filters by the following gender diversity criteria:

* the ratio of female executives and female board of director members to all executives and all board of director members;

* the ratio of female executives versus all executives;

* the ratio of female executives (excluding those on the board of directors) compared to the number of executives in total (again, excluding board members).

The top three sectors in SHE include:

* information technology (32.04% of its portfolio);

* healthcare (12.68%);

* and consumer discretionary (12.66%).

Currently, the fund’s top three holdings include Walt Disney Company at a 4.97% weight, Visa at a 4.88% weight, and PayPal Holdings Inc at 4.70% weight.

**

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

Rebecca is the Head of Equities, ESG & Sectors for State Street Global Advisors. We talk about ESG ETFs, responsible investing and how the industry is changing as more women invest their money.

News in Brief

Financial news

* South Korea became the first major Asian economy to raise interest rates on Thursday. The increase was to 0.75%.

* The US Federal Reserve Chair, Jerome Powell has said the central bank could start reducing its monthly bond purchases this year (in 2021). And an increase in interest rates will not immediately follow.

* The Nasdaq hit a new all-time high over 15,000 points. Chinese technology firms Pinduoduo (+16%) and JD.com (+11%) are leading the Nasdaq risers.

* The S&P 500 hits an all-time high (again), as it closes 4,500+.

* FTSE 250 hit a new all-time high, with the travel stocks giving it boost (it has lifted 16% this year to date).

* UK business leaders call for relaxtion of post-Brexit visa rules. The government is under pressure to unblock Britain’s worst supply-chain crisis since the 1970s,

Crypto: bitcoin, ethereum & DeFi

* Ethereum, Binance Smart Chain and Solana send DeFi value to record values. The ‘total value locked’ (TVL) in DeFi protocols across all blockchains hit $157 billion, according to data from DeFi Llama.

* Solana (ethereum competitor) records a second all-time high this week (Friday, 27th August) trading at $83.21. However, the price has since risen again and currently trading at $95.10.

* Paypal launches crypto buying and selling in the UK. This marks their first international roll-out outside of the US.

* Early Uber investor Bill Gurley takes personal position in Ethereum. Gurley thinks that Ethereum’s transition to POS (proof-of-stake) can give it advantage over Bitcoin.

Explainer: central banks and their impact on global markets

How will central banks’ exit strategy from Covid-19 policies impact investors?

Central banks have never had more impact on global markets and global investors than they do today.

To limit the damage to the global and UK economy because of Covid-19, central banks have been printing money which pumps liquidity into the markets.

In other words, central banks buy government and corporate bonds (from other financial companies and pension funds).

This helps to prop up markets…

… such as the S&P 500 and FTSE 250 and, in part, explains why we continue to see new all-time highs.

Central banks have also reduced interest rates to zero (or close to zero) in order to stimulate borrowing and consumer spending.

On Friday, the biggest names in US banking community gathered in Jackson Hole at their annual conference.

The US Federal Reserve confirmed …

…that they would start tapering back their asset purchases by the end of 2021 (from $120bn a month), but an increase in the main interest rate would not immediately follow.

This is in line with what the Bank of England (BoE) had communicated as its exit strategy: the priority is on reducing its balance sheet versus raising its main interest rate. (This is the opposite to the BoE’s strategy after the financial crisis).

This approach may be mirrored by other central banks.

What could this mean for global markets and investors?

* Longer maturity bonds will sell off

* It may reduce demand for riskier corporate credit (investors no longer need to search hard for yield).

* Longer-term interest rates drive the equity market (inverse relationship). For example, when the 10-year Treasury yield rose to 1.74% by 31 March, this led to cheaper equity markets.

Meanwhile, keeping interest rates low …

…continues to stimulate the economy as the cost of borrowing (or servicing of that debt) is not rising.

This in turn helps to drive down unemployment, as economies around the world recover from the impact of the pandemic.

**

Listen: to the podcast interview with Shaun Richards about the impact of the pandemic on the global and UK economy.

Coffee Break? Read This

* More than 90% of female doctors have faced sexism at work, finds BMA.

* ‘Use your £11bn climate fund to pay for family planning,’ UK told

* Feeling stuck? Guilty? Overwhelmed? Try clearing these feelings out of your home.

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

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 #80 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on SPACs, the blank check vehicles, which raised a record $82.1bn in 2020. And why women need to build their own.

And we spotlight Cathie Wood’s ARK investment in Coinbase, the global cryptocurrency exchange which listed on the Nasdaq earlier this year.

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

And don’t forget to listen to The Purse Podcast with Sergey Young, a longevity investor and visionary with a mission to extend healthy lifespans of one billion people. We talk about longevity, the Longevity Vision Fund, gender-lens investing, how to invest, and how to live to 200!

****

And The Purse is taking time off, but we will be back in the final week of August.

Stay safe everyone & look after yourselves.

Enjoy your summer!

Jana

SPACs: why women need to build their own

What is a SPAC and why we need women-led SPACs

SPACs, also known as blank check vehicles, raised a record $82.1bn in 2020 (US) and $180bn in 2021 (so far), according Refinitiv data.

Yet despite their popularity..

..almost half of the 151 SPAC companies have no women on their board. And women held only 15.5% of the 671 total board seats in 2020 (according to Bloomberg).

Wait. Why?

SPAC structures are negotiated in private. And therefore can more easily avoid the scrutiny of public companies around ESG goals or gender diversity. (We see the same problem in venture capital and private equity too).

When these teams are put together, the SPAC sponsors (mostly men) default to their personal network which is made up of their male peers.

And as Gillian Tett for the Financial Times rightly says, privacy breeds clubbiness.

What’s a SPAC?

SPACs are shell companies. They are set up by founders or sponsors with the aim to acquire companies and take public through a merger.

SPACs have up to two years to acquire a company, otherwise they must return the cash and interest to investors (and sponsors lose their initial investment).

Once considered an investment backwater, SPACs have entered the mainstream due to the pandemic. And it is far easier for companies to raise capital this way, compared to an IPO (initial public offering).

Most SPACs have been created in the US, but the trend is going global. And are mostly participated by hedge funds, institutional investors and family offices.

But with no real need to think outside the box, male founders and investors perpetuate the status quo: mostly white guys continue to do business with mostly other white guys.

What’s the solution? Enter women-led SPACs

According to Betty Liu quoted in Forbes:

‘Having your own SPAC is a chance to rewrite corporate America…it’s an opportunity to invest in women at the helm of publicly owned companies, build diverse corporate boards from the birth of a company, and have more women investing.’

For example, Athena..

…is led by Chairwoman Isabelle Freidheim and CEO Phyllis Newhouse. And it is one of the only entirely women-led SPACs, with a diverse, all-female team of managers, advisors and investors. Athena recently absorbed Heliogen, a leading provider of AI-enabled concentrated solar power.

The SPAC sponsors and team need to have extensive and diverse experience. This includes senior dealmaking to attract investors, experience taking a company public and operational expertise to scale a business.

Women can tap into this experience…

… by proactively reaching out to the senior women in their network. Or by creating a new network of senior women with complementary skillsets.

Plus we know (based on research) that women invest in female-led companies three times the rate men do. They are also more purpose driven, which attracts the mission-driven investor.

PWP Forward Acquisition Corp is another example of a female-led SPAC that launched in March of this year. And it is focusing on improving ‘public market access for women-forward companies and demonstrate their outperformance, leverage our sponsor’s network and capabilities, and focus on delivering attractive returns’.

And so women-led SPACs are likely to fuel:

* women-led companies which are (largely) built to serve underfunded markets,

* and companies centred around ESG goals.

***

Dig deeper:

* UK listing review: reforms proposed to SPAC regime

* UK, Brexit and SPACs (LSE blog)

News in Brief

Financial news

* The US Federal Reserve moves closer to decision on ‘tapering’ massive stimulus. On Wednesday, it was confirmed that they had made progress on employment goals and inflation (2% average).

* US economic growth is weaker than expected, in the second quarter at 6.5% (on annualised basis).

* Eurozone inflation rises above inflation target (at 2.2%) and likely to peak at 2.5%.

* China stocks in the US suffer biggest 2 day wipeout since 2008. Sweeping crackdowns on its technology and education sectors has wiped $769bn in value from U.S.-listed Chinese stocks (in 5 months).

* UK’s economic recovery stalled in June due to ‘pingdemic’.

* Robinhood falls in its public market debut, closes at more than 8% lower at $34.2 per share.

* Apple demolishes earnings expectations but stock falls after iPhone chip supply warning.

Crypto: bitcoin, ethereum & DeFi

* On Monday, Bitcoin briefly surpassed $40,000 (below dropping below $37,000) upon speculation that Amazon will be accepting bitcoin as payment. However, Bitcoin is currently trading at $42,000. Ether is currently trading at $2,600.

* Goldman Sachs files for DeFi and blockchain equity ETF.

* Elon Musk’s Tesla holds its $1.3bn bitcoin position in Q2.

* Galaxy closes venture fund of funds backed by Franklin Templeton.

Cathie Wood’s ARK invests in Coinbase shares

ARK Fintech ETF and Coinbase Global Inc

Cathie Wood has gained superstar status in the investing world: she is the Founder & CEO of ARK Investment Management (US).

Referred to as the first star in the ETF industry (exchange traded fund) valued at $6.3 trillion, Cathie’s company is made up of 8 funds, 6 of which are actively managed ETFs (a relatively new approach when she launched).

Investors have injected $34bn into ARK’s 8 funds (in the past 12 months) and withdrawn (approximately) $1.2bn since February.

Cathie is a Bitcoin enthusiast

Despite Bitcoin dropping in price from its all-time high at $65,000 in April to (currently) at approximately $42,000, Cathie is very bullish regarding the future and price of the world’s largest cryptocurrency.

Her prediction that her favourite cryptocurrency will get to $500,000-still stands.

ARK Fintech Innovation ETF…

…invests in fintech companies including Square, Zillow, Pinterest, PayPal, and Alibaba. (Net assets for the fund are currently $4.2 billion).

The ETF includes these business platforms:

* Transaction Innovations

* Blockchain Technology

* Frictionless Funding Platforms

And based on recent data, ARK Fintech ETF bought 113,043 shares of Coinbase, the global cryptocurrency exchange.

Here’s some info on Coinbase Global Inc

* Coinbase has become a standard on-ramp for new crypto investors.

* Founded in 2012, Coinbase offers products including cryptocurrency investing, custodial accounts for institutions and a wallet for retail investors.

* Coinbase listed on the Nasdaq stock exchange in April of this year and was valued at $112bn (at the time of listing).

* Coinbase shares opened at $381 each but are priced at $240 per share (today).

* The direct listing was a landmark moment for the crypto industry and some regard Coinbase as this ‘decade’s Microsoft or Netscape’.

* Bitcoin and ethereum made up 56% of Coinbase’s 2020 trading revenue.

* Coinbase takes a percentage (or fee) from every transaction on the platform. So irrespective of whether the price of crypto goes up or down, Coinbase generates revenue from retail and institutional customers buying and selling their crypto online.

Crypto skeptics still refer to Bitcoin as a ‘speculative asset’ despite Bitcoin appreciating 200%+ per annum (over the last 10 years).

Why invest in a crypto exchange?

Investing in a crypto exchange like Coinbase gives investors indirect access to the crypto market without exposing them to the price volatility.

Coinbase’s business model is based on fees generated per transaction. The greater the volatility, the more users tend to trade (buy or sell).

Institutional investors like MicroStrategy, Tesla and Square have invested in Bitcoin which is driving crypto adoption and activity by the broader industry (as well as retail investors).

Read more:

* Coinbase review

* Why MicroStrategy CEO Michael Saylor bet company cash on Bitcoin

The Purse Podcast

Longevity, mission-driven investing and how to live to 200

* Why invest as a VC?

* The definition of longevity

* Women's health: an underserved market

* Gender-lens investing and female investors

* The Longevity Visionary Fund

* Why invest in disruptive businesses? 

* How is data and technology enabling this disruption? 

* How to diversify risk in a fund

* Investing for impact and the collaborative vs competitive mindset

* What makes a good investor?

* Sergey's personal plan to living until 200 years of age

* 2050: what is possible as a result of Sergey's work and investments?

Listen on all podcasting channels including iTunes, Spotify and Anchor.

Coffee Break? Read This

* Women face 45% motherhood penalty on earnings

* Gender pension gap: how women can boost their requirement pot

* 4 ways to make people feel more valued at work, even if you’re not altogether

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

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 #79 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on female-founded startup Kindbody (US) and the largest femtech raise of 2021. Its Series C was joined by high profile female investors including Gwyneth Paltrow, Sophia Amoruso and Yael Cohen.

And the Women Against State Pension Inequality campaign (WASPI) had a significant victory. On Tuesday, the Ombudsman confirmed their initial finding that the government failed to adequately communicate the change in state pension age for women born after 1950.

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

Stay safe everyone & look after yourselves.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Kindbody: the largest femtech investment in 2021, joined by female investors

High profile female investors invest in female-led innovation

In 2020, the femtech market broke through.

Female-focused digital health startups which cover: (including) maternal health, fertility, menstruation and sexual wellness surged in investments last year.

According to Rock Health, funding rose (for US startups raising $2m+):

* 105% last year to $418 million

* across 22 companies

* almost 2x compared to 2019.

However femtech startups still only account for 3% of overall digital-health funding in 2020 (even though women make 80% of healthcare decisions).

Female-focused startups are often undervalued and underfunded because they are considered ‘niche’ (or simply misunderstood) by mostly male investors.

We know that 80% of health VCs have not invested in women’s health.

Kindbody is the largest femtech raise in 2021: $62m Series C

Founded in 2018 by CEO Gina Bartasi, the startup’s ‘mission is to create global access to high-quality women’s health and fertility care’, by leveraging proprietary technology.

Kindbody has raised a total of $123m in funding from leading investors including Claritas Capital and Perceptive Advisors.

And its recent Series C round was joined by mission-driven female investors…

…including Gwyneth Paltrow, Sophia Amoruso and Yael Cohen. The press release says:

‘The strategic investments…will be used to accelerate the company’s already rapid growth and further its mission of increasing access to fertility and family-building services worldwide’.

Yael Cohen is also quoted talking about her decision to invest:

‘Why do women get asked to donate and men get asked to invest? Why is it presumed we only think with our hearts and men think with their wallets? I’m committed to female funded, not just female founded.’

High-profile female investors are key…

…to generating attention, validation and more capital in underserved markets. And we know (based on research) that women are three times more likely to invest in female-led startups than men.

High-profile female investors are therefore very high signal. And not just because they are shifting capital to female founders. But because this is validating the market, business and female-led innovation for other investors.

And this sends a clear message that women do invest. Which is changing the outdated narrative about women being risk-averse and not interested in money.

And of course, institutional money is paying attention. Which can only be a good thing for women raising money.

Read more here:

* Women’s digital health startups

* Femtech market size

* Femtech: 17 startups closing the UK’s gender health gap

News in Brief

Financial news

* Euro business activity grew at the fastest rate for 21 years in July as the economy continued to reopen.

* FTSE wiped £44bn in value on Monday, as investors sold shares on fears over the Covid-19 pandemic (the biggest fall in 2 months). Another £9.6bn was knocked off the value of the smaller FTSE 250 index. On Wednesday, the FTSE 100 had the best day since February.

* Retail sales in the UK rose 0.5% in June from the previous month, when sales fell 1.4%. 

* UK borrowing debt servicing costs hit record but borrowing falls as the economy reopens.

* Bank of England (BoE) expert warns that tightening monetary policy is not right to limit inflation.

* BoE to link director pay to progress on diversity target.

* Jeff Bezos reaches space on the Blue Origin first crewed launch. the trip marked its entry into the private spaceflight.

Crypto: bitcoin, ethereum & DeFi

* Bitcoin fell below $30,000 on Tuesday (erased $90bn in market cap) but rebound again Wednesday after Elon Musk confirmed that he still owns Bitcoin. Bitcoin is currently trading at circa $34,400+. And ether is trading at circa $2,170+.

* Cryptocurrency boom has further to run, according to professional investors, with nearly 1 in 3 expecting trading to increase over the next 12 months.

* Rothchild Investment Corp more than tripled Bitcoin exposure in Q2.

* Coinbase reports global cryptocurrency transactions rose 32%. UK daily transaction volumes rose 30% q-o-q to £468m (from £325m in Q1). The figures show the ongoing interest in Ethereum, with its average daily trading volume rising 53% to $3.2bn in Q2.

* Bitcoin is a ‘key trend’ for Twitter says CEO Jack Dorsey. And that it is ‘hugely important’ to both Twitter and the shareholders to ‘continue to look at the [crypto] space and invest aggressively in it.’

* Elon Musk says he owns Bitcoin, Ethereum and Dogecoin. Tesla and SpaceX also own Bitcoin. In Elon’s words: ‘I might pump, but I don’t dump’.

* Tesla likely to start accepting Bitcoin as payment again once it conducts due diligence on the amount of renewable energy used to mine the currency, according to Elon Musk. Bitcoin jumped 8% to $32,160.16 and ether rose by 11.6% to $1,993.36.

* OpenSea secures $100m in Series B round at $1.5bn valuation. The plan is to grow the team and expand globally.

* Damien Hirst’s ‘currency’ NFT drop more than 6x oversubscribed. The NFT drop consists of 10,000 unique colourful dot pattern artworks with a corresponding NFT for each piece.

Women’s state pension fight

The Ombudsman’s initial finding of maladministration by the DWP

The 1995 Pensions Act changed the law:

women born after 1950 could no longer claim a state pension at the age of 60. The state pension age increased for women (to match men, incrementally) to 65 from 2010- 2018. (The state pension age will rise to 66 from 2026, for those born after 1960).

As a result, the Parliamentary and Health Service Ombudsman (PHSO) received many complaints from women about how this change was communicated.

What did this mean for women?

Many were unprepared financially. They were unaware of how these changes would affect them personally and led to emotional distress. Many have been short of funds.

According to the Women Against State Pension Inequality campaign (WASPI), 3.8m women have been affected.

The Ombudsman’s finding

Last Tuesday, the ombudsman found that from 2005 onwards, the Department of Work and Pension (DWP) had failed in the action taken to communicate the State Pension age.

Amanda Amroliwala, Parliamentary and Health Service Ombudsman CEO, said:

‘After a detailed investigation, we have found that DWP failed to act quickly enough once it knew a significant proportion of women were not aware of changes to their State Pension age. It should have written to the women affected at least 28 months earlier than it did.

‘We will now consider the impact of these failings, and what action should be taken to address them.’

Although this is a big victory for the WASPI campaign…

…because thousands of women could be compensated (for DWP’s failing to adequately communicate); the ombudsman has no ‘power’ to refund lost pensions.

However the WASPI campaign is:

‘…calling on the Government to agree fair and adequate compensation for WASPI women rather than allow what has become a vicious cycle of Government in-action to continue’.

WASPI are engaging legal advisers to decide the next steps in the campaign.

Read the full report here.

Read more about Women and the State Pension.

Coffee Break? Read This

* MPs to examine lack of support for working menopausal women

* Men cause more climate emissions than women, study finds

* Government to introduce duty on employers to prevent sexual harassment

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

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 #78 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on the menopause; why this is an underserved market, the costs to women, businesses and society and what can be done about it.

And 48% of women in the UK are buy-to-let investors. We highlight some key stats and explain what buy-to-let investing is.

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

And don’t forget to listen to The Purse Podcast with Heather Jackson, the Co-founder of Gen M. We talk about the menopause, how big the market is, why it is an underserved market (and the associated costs), the opportunity for businesses, and what women can do as they ‘transition’ to the next phase of their life.

Stay safe everyone & look after yourselves.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

The menopause: an underserved market

“.. we all (should) wake up, smell the coffee and support this incredible audience of women who would deserve to be better looked after” Heather Jackson

The menopause: sometimes referred to as ‘the change’, is a condition women have had to suffer through in silence for generations.

It is still considered taboo.

And based on research, only 36% of women feel moderately prepared or prepared for menopause. In fact, most women can not name the 48 symptoms of menopause (read about them here).

According to the Invisibility Report, 14m working days are lost in the UK each year to the menopause.

As Heather Jackson (Co-founder for Gen M) said on The Purse Podcast:

‘Financially, business-wise, retail-wise consumer-wise, you name it, in every which way…we've been underserved.’

Heather adds:

‘If you think that in the UK, there’s 1.2% vegans in this country… we know how much money is spent on understanding that market, marketing to them, creating products for them, servicing them. But let's remind ourselves that's 1.2% of the population, right?

20% of the population is menopausal and how much time, effort by businesses, by retailers is being put into understanding, seeing, feeling, and reaching out to the needs of these women?’

The costs to women and businesses (are real)

It costs women an average $20k in trial-and-error spending on prescriptions, doctor visits, treatments, devices and products. 

Many senior women leave the workplace in their 50s because of the menopause- whether they are aware of it or not. Ironically, this is often at the peak of their career.

Meanwhile businesses haemorrhage talent and money (because of it). And often are in the dark about the real reason senior women are leaving the workplace.

And the highest rates of suicide and divorce is for women aged 51-54 years-the menopausal age.

Coincidence? We don’t think so.

What is the menopause?

Menopause is when a woman stops having periods. And it is diagnosed after a woman has not had her period for 12 months. The average age of menopause is 51, but most women enter this phase in their 40s or 50s.

Heather goes on:

‘..no one says it takes you 10 years to get to that stage. And the 10 years in between…are so fluctuating on your hormone levels… (and this impacts your life)…’

Here’s a list of key data points:

* 13m women currently in menopause (UK).

* 1bn+ women globally will be in menopause by 2025.

But, even though women control 80% of all healthcare buying and usage decisions in a $3.5tn healthcare industry…

…the menopause market is hugely underinvested.

80% of health VCs (mostly male) have never invested in women’s health. And reproductive healthcare still makes up 95% of the femtech investment space.

The menopause market only makes up 5% of femtech investment (despite it being valued at $600bn, according to the Female Founders Fund).

But Heather believes that brands and organisations are sitting on the menopausal pound.

That is, untapped revenue from existing products and services that are unknown, unappealing or miscommunicated to women. Or because women are simply unaware they are going through the menopause.

As Heather says: we need to solve the ‘awareness’ problem first.

Solutions menopausal women are looking for fall into 4 main areas:

* Telehealth /Medical Platforms

* Products

* Supplements

* Community/Content Solutions

Support in a change in lifestyle, diet and exercise are (also) crucial ‘solutions’ for women going through the menopause.

So what can existing businesses do?

At a basic level, companies can introduce a menopause policy.

Heather goes on to say:

‘….brands need to understand their audience, understand the menopause symptoms and more about the merchandise range they have…They've got marketing budgets that we can only dream of. They've got product development with brilliant creative people to come up with (new) products…’

Gen M, the menopause partner for brands and organisations…

…helps them to understand menopause and get them to signpost to (for example):

‘climate control bedding, makeup that doesn't run down your face when you're on a zoom call or bras that accommodate the different fluctuations of your boobs’.

***

Here’s what to do next:

* Go to the Gen M website

* Read the Invisibility Report

* Listen to The Purse Podcast interview with Heather Jackson

* Find out if your employer has a menopause policy

* If you run a startup or business, make sure you have a menopause policy.

News in Brief

Financial news

* China’s GDP grew 7.9%, in the second quarter; retail sales beat expectations.

* US Federal Reserve Chairman Jerome Powell said Wednesday the economy is ‘a ways off’ from where it needs to be for the central bank to change policy.

* US inflation rose to 5.4% in June (annual rate), as used car prices picked up quickly. The Fed still considers inflation to be temporary.

* UK inflation rises sharply to 2.5% in June (the highest level since August 2018). And the Bank of England (BoE) said that the monetary policy may be tightened sooner than expected (eg rise in interest rates). Inflation could peak at 4%.

* UK payroll numbers rise as economy reopened.

* Women unlikely to catch up with men on FTSE 350 boards until 2036, according to report.

Crypto: bitcoin, ethereum & DeFi

* Ethereum ETF to list on Brazil’s stock exchange. QR Capital will buy ether and offer investors exposure to it without them having to worry about wallets or private keys.

* S&P Dow Jones Indices launches new cryptocurrency indexes. The S&P Cryptocurrency Broad Digital Market Index, or BDM, tracks more than 240 digital assets at launch and represents an expansion of the firm’s recently launched crypto benchmarks.

* Payments company, Square is building a DeFi, (decentralised finance) business using bitcoin. DeFi applications allow for financial transactions that are more easily accessible, efficient and relatively low cost.

* Shares in Picasso painting go up for grabs at $6,000 in blockchain sale. ‘This marks the first time the ownership rights in a Picasso, or any artwork, are being broadcast onto the public blockchain by a regulated bank..’

* Met police seize record £180m of crypto in London.

Women are buy-to-let investors

And their buy-to-let income is increasing twice as fast as men’s

Even though women make up just 15% of the workforce in the property and construction sector, women now make up 48% of buy-to-let investors in the UK.

Buy-to-let investing is…

…buying a property in order to rent it out (to a third party), for regular monthly income (and a return on investment). The monthly rental income is also referred to as passive income.

The idea is for the cost of the mortgage (and any monthly expenses incurred) to be covered by the rental income. (Although most buy-to-let investors aim for a monthly rental premium).

The value of the property may also go up, but factors including the location often determines the price.

In simple terms, the higher the rental income relative to the price of the property, the higher the yield or return for the buy-to-let investor (assuming costs stay the same).

The buy-to-let mortgage works differently to a residential mortgage. Most lenders require a minimum 25% deposit (UK) and consider the monthly rental income and personal income. The minimum personal income must be between £20,000-£25,000.

Landlords now face a 3% stamp duty surcharge on second home purchases. And mortgage interest payments can no longer be offset against the income tax that is paid on collected rent.

Women investors: here are some key stats..

* the number of number of residential property landlords who are women increased to 1.25m from 1.2m in 2020.

…And based on research by real estate agency ludlowthompson (UK), women’s buy-to-let income:

* is increasing almost twice as fast as men’s (27% vs 15% in the last 5 years)

* has drastically increased to £16.1bn (vs total income £36.4bn)

Women prefer property investment…

..because it is often associated with stability, minimal volatility and investing for the long-term. (In fact, research suggests that younger women buy their first residential property before younger men do).

But according to Rob Dix, co-founder of Property Hub, the increase in income among female buy-to-let investors may be the result of tax planning among couples.

However, what is obvious from the data is that women investors are generating income and wealth, in their name.

What next?

* Read about buy-to-let mortgages here

* Find out how much you can afford to borrow here

The Purse Podcast

The menopause: an underserved market

We cover the following in out conversation:

* What is perimenopause and the menopause?

* How big is this market?

* Why is it underserved & what are the costs?

* What are the 48 symptoms of menopause?

* Gen M: the menopause partner connecting brands and organisations

* What can businesses and employers do to support women?

* What is the opportunity for businesses?

* Heather's approach to starting her business and investment.

* Advice for women and how their loved ones can support them.

Listen on all podcasting channels including Spotify, iTunes and Anchor.

Coffee Break? Read This

* For women, remote working is a blessing and a curse

* Tips for women on the verge of a career change at 50

* Two thirds of working mothers lack childcare

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

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 #77 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on women investing in crypto and why we need more women in the blockchain and crypto industry.

Read the explainer on why the global stock markets continue to rise despite the global pandemic.

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

And don’t forget to listen to The Purse Podcast with Bridget Greenwood, the Founder of The Bigger Pie. We talk about blockchain, crypto and DeFi (decentralised finance), gender diversity in blockchain and crypto.

Stay safe everyone & look after yourselves.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Women are investing in crypto

But we still need more women in the blockchain and crypto industry

The world of investing is still considered (wrongly) a male domain. And whilst the same can be said for investing in crypto, recent data suggests that this is changing.

Women invest in crypto

Research published earlier this year by Gemini (UK) suggests that investing in crypto is becoming more diverse, and specifically women are engaging as investors.

Here are the key data points:

Out of the 13.5% of 2,000 respondents that are current or previous cryptocurrency investors:

* 41.6% were women

* Of the 9% that are planning to invest, 40% were women

* This represents a ‘significant shift’ where women made up ‘just’ 21%–22% of crypto investors.

* Men tended to hold more cryptocurrency than women in categories:

* over £10,000/$13,694 (65.8%)

* and below £500/$685 (62.1%)

* Women made up 53.4% of those holding £1,000–£5,000 ($1,369–$6,847).

However, a report published by Etoro (a trading platform) in February of this year, said that women represent only 15% of bitcoin traders. But the percentage of women holding Bitcoin on its platform increased from just 10% a year ago.

Since the start of the pandemic..

…there has been a surge in retail investing, after the global stock markets plummeted (March 2020) but bounced back because of government stimulus.

Online trading platforms make investing far more accessible often charging ‘zero fees’. It has never been as easy to invest (in theory) in Tesla, Bitcoin and meme stocks like Gamestop.

In an interview with…

…Gretchen Howard, the Chief Operating Officer of Robinhood (the US trading app) said that she has seen significant growth in the number of women customers in the last 2 years. This is a 369% increase year-on-year.

The platform reported in March that 40% of its active female customers were trading crypto, a seven-fold increase over 2020.

The blockchain and crypto industry

However women continue to be underrepresented in the blockchain and crypto industry. It is estimated that women represent no more than 29% in the blockchain and crypto industry (and this is considered a generous estimate).

Women-led events and women-led communities

Role models and women’s communities are vital to increasing female involvement and representation in the blockchain and crypto industry.

Sharing learnings and experiences is often a powerful way for women to learn and engage.

Bridget Greenwood, the Founder of The Bigger Pie encourages women to join a women’s community regardless of whether women have a technical background or not.

Often women with experience, have many transferable skills which can be applied in the blockchain and crypto industry. And the rest can be learnt.

What next?

* Listen to The Purse Podcast interview with Bridget Greenwood talking about blockchain, crypto and DeFi. And how more women can engage in the industry.

News in Brief

Financial news

* US Treasury yields plunged as low as 1.25% this week, compared with a peak above 1.7% at the end of March. Markets have come to the view that the global economic rebound will soon decelerate, and the Fed will not lose control of deflation.

* UK economy expanded by 0.8% in May, much weaker than the 1.5% growth expected (and remains 3.1% below its pre-pandemic peak).

* The European Central Bank (ECB) shifts inflation target from ‘below 2%’ to towards a 2% target. German politicians concerned that printing billions of extra euros this year will spark an inflationary spiral.

* UK house prices fell in June: price of average home slipped by 0.5% in June to £260,358 but still 8.8% higher than a year ago.

* British fintech Wise valued at nearly £9bn after record London direct listing. Wise opted for a direct listing meaning the company began trading on Wednesday without raising any money.

Crypto: bitcoin, ethereum & DeFi

* On Thursday, Bitcoin fell 7% to $32,639 amid a broader cryptocurrency sell-off that has also dragged crypto-linked stocks lower. Ether was down 10.0% to $2,149.15. See Bitcoin price & Ether price today.

* Bitcoin’s transaction fees sink to 2020 prices as bull run wanes. The average transaction fee on Bitcoin is $3.92 (Saturday), indicating a steep drop off from this year’s all-time high of $62.78, set on April 21. 

* Bitcoin’s hash rate (the computing power used to mine new blocks) has fallen 50% from its peak in May. The main cause for the falling hash rate is the crackdown on bitcoin mining in China. The number of daily transactions has also fallen.

* Ether could become the dominant store of value, because of its real use cases, according to a Goldman Sachs note. That means ether could eventually overtake bitcoin as the top cryptocurrency.

* Cryptocurrency firm Circle, the issuer of the USDC stablecoin, will go public via a SPAC.

* Jack Dorsey’s Square to commits to building a Bitcoin hardware wallet.

* Apple Co-Founder Steve Wozniak, says that Bitcoin is a mathematical miracle.

* New Coindesk research shows that the DeFi market is not slowing down. Decentralised Finance (DeFi) is proving to be the great differentiator between bitcoin and ether. ‘One of the things that will be interesting to watch in the upcoming quarter is the makeup of crypto assets locked in DeFi..’

Explainer: why are global stock markets at record highs?

Stock markets continue to rise during a global pandemic. Why?

Global stock markets are at a record high.

The MSCI All-Country World Index is already up 12% this year to an all-time high.

And as reported by Bloomberg, the likes of BlackRock, and State Street Global Markets expect equity markets to keep on rising in the second half of this year.

But why are stock markets around the world hitting all-time highs during a global pandemic?

Rewind: central banks are ‘propping up’ the global stock markets

To limit the damage to the global and UK economy because of Covid-19, central banks have been printing money. This is also referred to as quantitative easing or QE.

In other words, central banks buy government and corporate bonds (from other financial companies and pension funds).

At the same time, central banks like the US Federal Reserve and the Bank of England (BoE) cut its Base Rate to 0% and 0.1% (respectively) in March 2020.

So whilst QE helps to pump liquidity into the markets, borrowing is cheap as the low Base Rate feeds into households and businesses (should in theory) spending more.

Low interest rates has also allowed the government to borrow money cheaply. They have provided fiscal programmes (for example, the furlough scheme or the Bounce-back Business Loan in the UK) which has helped households and businesses stay afloat.

And yes, government debt has skyrocketed during this time.

Investors are confident (sort of)

Vaccination is accelerating globally, the main central banks continue to print money, government support is still present and corporate earnings are bouncing back.

This coupled with pent up demand and global economies re-opening, within a low interest environment, means that investors are less cautious and are pouring money into equities (for a higher return).

Interest rates likely to stay at zero or close to zero (for now)

And for the time being, central banks have signalled that they will not increase interest rates (Base Rate) any time soon (likely in 2022+) Which means that borrowing continues to be cheap and consumer spending should (in theory), go up.

And profit expectations have bounced back…

…to pre-pandemic levels (globally). Investors see a recovery in earnings growth as vital to stock markets continuing to rise.

This outlook is expected to continue into 2022 and 2023.

But keep an eye on:

* Rising inflation: is it temporary or permanent? Has the global economy recovered too fast? Markets have come to the view that the global economic rebound will soon decelerate.

* Investors need to hedge against inflation. Purchase assets where the rate of return (on assets, like equities) is greater than inflation (note: the rate of inflation relates to where you spend your money, and is likely to be higher than the reported CPI figure of 2.1% in the UK).

* New Covid variants pose a threat to the global recovery.

* Market volatility: it is highly likely but also a good time to ‘buy the dip’. However, some expect a ‘market crash’ is coming (no one knows when this will be).

***

* Listen: to the podcast interview with Shaun Richards about the impact of the pandemic on the global and UK economy.

The Purse Podcast

Blockchain, crypto and DeFi (decentralised finance) and the women innovating

We cover the following in our conversation:

* Women-led communities in blockchain

* What is blockchain, DeFi and why should we care?

* Why is this space so hot right now?

* Senior women and gender diversity in tech

* Blockchain projects led by women (from The Bigger Pie community)

* The 200bn Club

Coffee Break? Read This

* Why inclusive leaders are good for organisations and how to become one

* Twice as many City women as men suffer ‘extreme’ stress during the pandemic

* Why we need to consider switching to a 4 day work week-now

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

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 #76 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on the rise of sexual wellness and sextech. And how are female founders like Cindy Gallop driving change in a market ready for disruption?

And we spotlight female celebrities including Emma Watson, who are turning to business and investing in startups. Emma recently invested in a biotech startup called FabricNano.

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

And don’t forget to listen to The Purse Podcast interview with Angelo Robles. We talk about the single family office, the definition of wealth, investing trends, adapting to change, ESG investing and women’s wealth.

Stay safe everyone & look after yourselves.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Women’s health: the rise of sexual wellness & sextech

Female founders are opening up new markets

Female pleasure has been misunderstood and ignored. And historically women’s orgasm has been considered secondary.

In fact, a study (US) found that women’s orgasm is put on the back burner for nearly every age group.

Men have access to far more medicinal products for sexual arousal and orgasm than women.

And the adult entertainment industry is dominated by men and geared towards their pleasure (in some cases showing sexual abuse in culture).

Sexual wellness & sextech markets-here are some stats:

* The sexual wellness industry is estimated at $125bn by 2026

* Sextech is estimated at $30bn+.

But sex is still considered a taboo subject...

…and (mostly white, male) investors are squeamish (biased), especially when it comes to talking about female pleasure. Therefore, you could argue that sexual health falls into a vice category like gambling or alcohol, for investors. And it shouldn’t.

80% of healthcare VCs have never invested in women’s health

…which includes women’s sexual health, even though women’s orgasms help to regulate menstruation, boost immune systems and help pain.

The women’s global health market has been estimated to be worth $3.1tn+. And women spend approximately $500bn a year, on medical expenses but only receive 4% of the healthcare R&D budget.

Here’s a funding gap illustration, in real terms (both startups are 4 years old):

* US men’s health startup, Roman: raised $897m, valued at $5bn

* US women’s sexual wellness startup, Modern Fertility: raised $22m (recently sold to Ro for $225m).

Changing perceptions..

According to Bryony Cole, host of the Future of Sex podcast, sex toys have moved into the wellness category and is seen as an important part of self-care.

Bryony also expects that: ‘with more acceptance and normalised attitudes towards sextech.. department stores will stock these (sex toy) devices and sexual wellness routines will be highlighted in mainstream media and by celebrities’.

Thomas Buisson from Fable Investments, has said to Forbes: ‘sexual wellness does deliver in the same way as good food or good sleep’.

Also, according to female founder of Emjoy, Andrea Oliver Garcia (quoted in Sifted): ‘we don’t have anything about how your sexuality evolves during or after pregnancy. When you have children. When you have been married for a long time…’

Sexual care is self-care and changing culture

For founder and CEO, Éva Goicochea who has recently raised $5.8m Series A (total funding exceeding $10m) for her sexual wellness startup Maude, she is committed to changing how we all think.

Cindy Gallop, Founder and CEO of MakeLoveNotPorn (MLNP), a social sex platform, is on ‘a mission to socialise and normalise everything around sex in the real world to make it easier for everyone to talk about, to promote consent communication, good sexual values, and good sexual behaviour’. She considers MLNP to be in the market of human happiness.

Cindy’s main objective is to end rape culture and create world peace.

It is worth emphasising, that female founders often unlock new markets or categories (with pent up demand) and which also has a positive social impact.

The next trillion dollar category in tech

According to Cindy, every business obstacle she encounters is a huge disruptive business opportunity in itself, which includes infrastructure (like payment systems) and advertising on social media.

She wants to build out the entire underlying ecosystem and considers sextech to be the next trillion dollar category in tech.

This is also why Cindy has set up her own sextech VC fund called, All The Sky.

Listen to our full interview with Cindy Gallop.

News in Brief

Financial news

* Over $40bn pledged to advance gender equality during the Generation Equality Forum (convened in UN Women in Paris). For example, this includes the consumer goods company, P&G, which has committed to spend $10 billion with women-owned and women-led businesses by 2025.

* The US labour department on Friday said 850,000 jobs had been created in June. This is well above economists’ expectations (surpassing the upwardly revised 583,000 gain posted in May).

* US consumer confidence jumps to pandemic-era high. Consumer confidence rose for a fifth straight month to hit a new pandemic-era high, reflecting optimism over improving economic conditions

* Bank of England (BoE) Governor Andrew Bailey says it is important not to over-react to inflation which is ‘temporary’. UK inflation hit 2.1% in May (exceeding the 2% target) and is likely to surpass 3%.

* Rishi Sunak to announce £15bn green finance deal. The aim is to turn Britain into a world leader for low-carbon financial services, to fund infrastructure schemes and to create more green jobs in the UK. Read more.

* UK house prices rise at fastest rate since 2004 amid stamp duty rush. The average price of a UK home rose 0.7% in June from May to £245,432, taking the annual rate to 13.4%.

* UK households increased their borrowing in May for the first time in 8 months as lockdown is lifted (as interest rates are low). This is mostly because of car finance deals and personal loans.

Crypto: bitcoin, ethereum & DeFi

* Cathie Wood's Ark ETFs invested in crypto-related investments as bitcoin fell below $30,000 on Tuesday. Ark funds bought over 1m shares of the Grayscale Bitcoin Trust and 214,718 shares of Coinbase. Cathie still believes Bitcoin price will hit $500,000 in the long-term.

* Cathie Wood’s ARK Invest is teaming up with 21Shares US LLC, which filed with the U.S. Securities and Exchange Commission on Monday to create a bitcoin exchange traded fund (ETF). ARK Innovation ETF was the top-performing U.S. equity fund last year, has been a vocal proponent of bitcoin.

* Morgan Stanley bought 28,289 shares, worth over $1.3m (at the time of the sale) in the Grayscale Bitcoin Trust through its Europe Opportunity Fund. It first gave its funds exposure to digital assets in April this year. 

* UK bans cryptocurrency exchange Binance from operating without ‘written consent’.

* Elon Musk gives Dogecoin a sudden boost. ‘Release the doge,’ Musk posted on Twitter alongside a meme depicting Marlon Brando as The Godfather. The dogecoin price jumped by 4% following the post. (Market cap is at approximately $30bn).

Female celebrities: investing in startups

Emma Watson invests in a London-based biotech startup

Emma Watson, an actress and businesswoman, who played Hermione Granger in the Harry Potter jaggernaut franchise, has recently become an angel investor.

An angel investor is a high net worth individual (earning over £100K per annum or who has over £250K+ of investable assets, excluding a pension and family home).

She has joined a group of investors, including Twitter cofounder Biz Stone and Elvie founder Tania Boler, to fund a biotech startup based in London called FabricNano.

The company has developed a method to make plastics without using fossil fuels and chemicals (without being more expensive).

Their investment in this round totals $12.5m (Series A) and will enable the startup to launch its products on the market in between 12-18 months. With this investment, the startup has raised a total of $16m.

In 2009, Emma launched an ethical fashion range with People Tree, and used her press tour for 2017 film Beauty and the Beast to highlight sustainable fashion.

Women are investing

Female celebrities are turning to business and investing.

Here are a few examples:

Priyanka Chopra has invested in dating app, Bumble, Jessica Alba, one of Hollywood’s most successful investors and businesswomen through her Honest Co. company, also invests in Headspace.

Meghan Markle, the Duchess of Sussex, invested in a wellness startup called Clevr Blends in December of last year.

Meanwhile tennis champion, Serena Williams setup her own venture capital firm called Serena Ventures in 2014. Her investments include startups like billie, Cointracker and Hello Alice.

Here’s more about angel investing and crowdfunding

* Listen to our podcast with Sarah Turner, about how more women can invest in startups.

* You can also invest smaller amounts via crowdfunding sites. Listen to our podcast with Julia Elliot Brown where we talk about crowdfunding as a way to invest.

The Purse Podcast

Family offices: ESG & Women’s Wealth

We cover the following in our conversation:

* The single family office: what is it and why set one up?

* The definition of wealth (& the pandemic)

* Investing trends family offices are tracking

* How engaged are female family members?

* How do women manage money & invest?

* ESG & gender-lens investing

* Investing in female-led companies & startups

* How can investors allocate their capital to build a better world?

Listen on all podcasting channels including iTunes, Spotify and Anchor.

Coffee Break? Read This

* Study finds that changes in wealth tied to changes in cardiovascular health

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not recommend products or services or 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 #75 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we focus on ‘green pensions’.

Based on recent data, most ESG funds have outperformed the wider market (over the last 10 years).

So how you can ensure that your money is aligned to your ESG goals as well as maximising returns?

Read the news in brief and stay on top of global financial, economic and investing trends.

And we explain what inflation is, how it is measured and why inflation is rising.

Importantly, we talk about how to hedge against it.

And don’t forget to listen to The Purse Podcast with Shaun Richards. We talk about the pandemic and the impact on the global, US and UK economy. And what this means for you and your money.

Stay safe everyone & look after yourselves.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

‘Green pensions’: aligning your investment to ESG goals

Investing in sustainable businesses

Based on recent data, most ESG funds have outperformed the wider market (over the last 10 years).

And we know that the majority of women are interested in responsible investing.

However, many are unaware that their work pension or retirement fund may be propping up firms which do not align to their ESG (environmental, social and governance) goals.

This may include the fossil fuel industry or firms which are laggards in gender and racial diversity.

As reported by The Guardian, Rianna Gargiulo, a divestment campaigner at Friends of the Earth, said:

‘Most employees (or individuals) aren’t aware they are funding fossil-fuel companies. It doesn’t come to the top of people’s minds, and pensions are not straightforward. But there are more and more fossil-free funds available because people are starting to question it.’

Richard Curtis’ Make My Money Matter campaign…

… is pushing some of the £3 trillion in UK pensions to be moved into sustainable business. It wants all the funds to commit to net-zero carbon emissions, with a halving of emissions by 2030.

According to the campaign:

* 63% of savers don’t know where their pension is invested

* 44% of people would switch to a green fund if their provider offered it.

And the good news is that the UK government is behind ‘green pensions’

It just announced that the pension scheme trustees will be required to assess and report on the risks of climate change to their investments. 

What can you do?

* If you want to make a change, talk to your employer

* Try to get the pension provider to change what they’re doing.

* Make My Money Matter has a template email to send to your provider to encourage it to move to net zero.

* If you’re not happy with your pension provider, you could shift to a self-invested personal pension (SIPP)-however employers are unlikely to contribute to a SIPP.

News in Brief

Financial news

* US President Joe Biden announces infrastructure deal, after meeting with a bipartisan group of senators. The framework will include $579 billion in new spending.

* US: the S&P 500 rallied 2.7% for the week; its biggest weekly gain since early February. Investors are betting that inflation is temporary, as the economy continues to recover (from the pandemic).

* US Fed balance sheet expansion beyond the $8tn mark. Fed balance sheet now equal to 37% of US's GDP vs ECB's 78%, BoJ's 134% or #SNB's 145%.

* Apple, Microsoft, Amazon and Alphabet are all at or near a $2tn valuation. Facebook is likely the next member of the trillion dollar club.

* Bank of England (BoE) voted 9-0 to hold to maintain bank rate at 0.1%. Voted 8-1 to keep bond buying plan unchanged at £875bn. BoE says inflation likely to rise 3%+ but insists inflation surge is temporary.

* Brits are hoarding more cash than 16 other countries during the pandemic.

Crypto: bitcoin, ethereum & DeFi

* Total cryptocurrency market cap is down from $2.5 trillion in May to approximately $1.38 trillion.

* Bitcoin price has fell below $30,000 and is now at $33,000. Bitcoin charts show the price 50-day moving average has fallen below the 200-day moving average-a pattern known as the ‘death cross’.

* (Monday) Bitcoin tumbled 11% after China steps up crackdown on crypto mining and financial operations. (Ether price fell 6%, currently it is trading at $1800+)

* Coinbase cofounder Fred Ehrsam has warned ‘most’ cryptocurrencies and crypto-assets ‘won't work’ and ‘90% of NFTs’ will have ‘little to no value in three to five years.’

* MicroStrategy buys $500bn of bitcoin as the market fell. It now holds 105,085 bitcoin, worth about $3.3bn at current prices. Michael Saylor (CEO), at the same time predicted bitcoin’s market cap would reach $100tn.

Explainer: rising inflation and what does this mean for your money?

What is inflation and how do we measure it?

Inflation around the world is rising much faster than expected.

In the US, inflation has jumped to 5% in May (from 4.1% in April) which is the biggest jump since 2008.

Inflation in the UK rose to 2.1% in May (exceeding the Bank of England’s target of 2%). And in its latest statement, the Bank's Monetary Policy Committee (MPC) said that inflation will rise to 3%+ (although they anticipate this to be temporary).

However, according to Resolution Foundation inflation (UK) is on course to rise to 4% (in the next few months) as the economy opens up and consumers begin to spend.

What is inflation?

There are two ways of defining inflation.

One relates to an increase in money supply (all the currency and other liquid instruments in a country's economy on the date measured).

And the other relates to the continuous rise in consumer prices (referred to as the consumer price index ie CPI).

Deciding what to include in the measure of inflation or CPI is a much debated topic. For example, whilst rent is included in the CPI, house prices are not, even though buying property makes up a significant amount of an individual’s spending or consumption.

Therefore does the CPI accurately reflect the real rate of inflation?

If we assume that house prices have gone up by roughly 10% since May 2020, the UK inflation rate should be closer to 5%-6% versus the 2.1% (based on a rough calculation).

Why is inflation rising?

In order to limit the damage to the global and UK economy because of the pandemic, central banks have been printing money (also referred to as quantitative easing (QE)). In other words, the central bank has been buying government and corporate bonds.

The Bank of England is maintaining its bond-buying target at £895bn.

This acts in a similar way to cuts in Bank Rate. It lowers the interest rates on savings and loans. And that (should, in theory) stimulate spending in the economy.

UK money supply has increased 11% in the last year.

Consumer prices have been rising as the recovery around the world has been stronger than expected. The price of fuel and the cost of clothing, meals and pub and restaurant drinks also helped drive up prices.

Supply chain disruption and a shortage in labour is pushing prices up further. Wage increases attracts people back into work, but this drives up costs which may be passed on to consumers.

However, it is not clear whether this rise is part of a new trend-we are in unchartered territory.

What does this mean for your money?

Wages have gone down in the last ten years as inflation continues to go up.

Ray Dalio, the US billionaire and hedge fund manager, often says that ‘cash is trash’ because cash loses its value over time due to inflation.

This is is why cash in a savings account is eroding the value of your money in a low interest and inflationary environment.

Low interest rates encourage households and businesses to seek higher rates of return by investing in shares and property, which pushes up prices in those assets.

For individuals who own assets such as stocks, property and cryptocurrency (eg Bitcoin), rising asset inflation is making people wealthier.

For example, if your property was valued at £400,000 last May, it is worth £440,000 today (ie it has gone up by the 10% rise in house prices (excluding other expenses)).

In theory, this is good news for assets owners. However it is less so for individuals who do not own any assets or are trying to get onto the property ladder.

It also means that the wealth inequality divide is becoming much bigger.

Here’s how you can you protect yourself from rising inflation:

* Hedge against inflation by investing (and beat the rate of inflation).

* Move your cash ISA to a stocks & shares ISA.

* Invest in your pension (add to your monthly contributions or set up a self-invested personal pension (SIPP)).

* Invest your money in assets that will grow your wealth over time (for example, invest in stocks, index funds, ETFs (passive or active), art, gold, vintage wine, property, bitcoin).

* Speak to a financial advisor.

The Purse Podcast

The pandemic & the impact on the global, US & UK economy

We cover the following in our conversation:

* What is the impact of the pandemic on the global, US and UK economy & the stock market? Should we be worried?

* What is money printing?

* Government debt is rising-how are we going to pay that back?

* Low interest rates & rising inflation

* Unemployment & productivity

* Innovation

* Would you rather buy a bitcoin than a bond?

Listen on all podcasting channels including iTunes, Spotify.

Coffee Break? Read This

* Britney Spears case: IUD testimony was disturbing

* Mystery of the wheelie suitcase: how gender stereotypes held back the history of invention

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not provide product or service recommendations or 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 #74 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we highlight a report on gender diversity in the FTSE All-Share which reveals a gender pay gap and bonus gap.

We know that senior women tend to hire more women. And at the minimum threshold (33%), senior women significantly impact decision-making, increase performance and profitability, and build more female-friendly workplaces.

Gender balance is critical for women in the workplace.

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

And we explain cryptocurrency exchange-traded products (ETPs).

The pandemic has been fertile ground for the crypto market, as investors seek alternative, non-correlated assets which hedge against inflation. And many believe that crypto exchange traded products (ETPs) have gained a foothold in the investment mainstream. 

And don’t forget to listen to The Purse Podcast interview with Victoria Pynchon, co-founder for SheNegotiates, about how to negotiate.

Stay safe everyone & look after yourselves.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

Report: gender diversity in the FTSE All-Share

The gender pay gap, the bonus gap and how to negotiate

The UK government suspended gender pay gap reporting last year because of Covid.

But a new report by Women on Boards on diversity in the FTSE All-Share (excluding the FTSE 350) found a lack of gender diversity (at the board and executive level) and a gender pay gap above the UK average.

The report findings for gender diversity (FTSE All-Share, excluding FTSE 350)

The FTSE All-Share (in the report) comprises the FTSE 100, FTSE 250 and FTSE Small Cap. The findings for gender diversity are:

* 31% of board members are women

* 48% (less than half) of companies have met the target of 33% female board directors

* 7% of chief executives are women

* 16% of chairs are women

* 54% of companies have all-male leadership teams

* (3% of board members are ‘directors of colour’ (male or female)).

Although FTSE 350 companies achieved a set target of 33% representation of women on the board (before the end of 2020), more than 100 companies had failed to meet the diversity target. And 41% companies had still not reached 33% female board-level representation.

Why is this important?

Based on research, we know that senior women tend to hire more women. And at the minimum threshold (33%), senior women significantly impact decision-making, increase performance and profitability, and build more female-friendly workplaces.

The gender pay gap persists

The report highlighted that the gender pay gap for 2020 was 20.2% (for FTSE 350 companies required to report) and 17.3% for the remainder of the FTSE All-Share.

This is compared to the UK national average of 13.7%, according to Spktral.

According to new research reported by City AM, senior men get paid up to 23% more than women (at the associate level it is 9%).

The bonus gap

However, data showed that half of this gap comes from bonuses.

Men at the associate level (typically 2-5 years’ experience) receive 50% higher bonuses than women, on average £14k vs. £9k for women.

At the FTSE 350, the average bonus gap is 44.6% vs 36% at the FTSE All-Share.

In male dominated industries such as financial services and technology, the bonus gap can be as high as 50%-70% (if not more).

The more senior the position, the higher the bonus gap.

Although this can, in part be explained by the number of men who hold more senior positions (relative to women), the pay differentials do exist.

The cost to women

Added up over a woman’s lifetime, it is estimated that women lose out between £250K-£1m+. This figure is made up of lost earnings and a loss of investment returns, compounded, over time. And this starts for most women right out of university.

How to negotiate… to close the gender pay & bonus gap

Negotiation is a powerful tool for women.

According to Victoria Pynchon, a commercial litigator (US) with 25 years experience and a co-founder of SheNegotiates, women are outstanding negotiators.

Victoria defines negotiation as a peacemaking process which leads to an agreement (based on interests).

Here are some of Victoria’s tips for negotiating a job offer:

* Research your market value (online, talk to recruiters).

* Talk to your male colleagues about how much they earn. Why? Men are paid 20%-30%+ more.

* Have a plan and prepare.

* List your concessions, including your ‘deal-breaker’ (when do you walk away?).

* Set the standard: always make the opening offer.

* And more.

Listen to The Purse Podcast interview with Victoria Pynchon about how to negotiate.

News in Brief

Financial news

* The US Federal Reserve warned that there could be two interest rate hikes in 2023, due to rising inflation. They also confirmed that they would not taper back bond purchases (for now) but will soon begin talking about it.

* Global shares: worst week in a month whilst the US dollar trades near a 2 month high. The FTSE 100 had its biggest fall in over a month and the pound slips against the dollar.

* UK inflation rises to 2.1% which is above the Bank of England target. Lockdown reopening has driven up prices in clothing, fuel and meals faster than expected.

* UK unemployment falls as payrolls rise. The number of payrolled employees has increased for the sixth consecutive month, up by 197,000 in May 2021 to 28.5m.

* UK retail sales drop in May (1.9%), as people eat out. In April, retail sales increased 9.2%.

* UK Chancellor, Rishi Sunak, rejects calls by businesses to extend furlough extension.

* CBI predicts UK’s economic recovery will accelerate into autumn. The economy will expand by 8.2% this year and by 6.1% next year, despite staff shortages and risks of inflation. Wages growth is now running at 3%.

* ‘Big Short’ investor Michael Burry (US) is warning of the biggest market bubble in history. Earlier this year he said that the stock market was ‘dancing on a knife's edge.’

Crypto: bitcoin, ethereum & DeFi

* On Monday, MicroStrategy raised $500m in bonds due 2028, more than its $400m target announced last week, to acquire more of Bitcoin. The firm reportedly received more than $1.5bn in orders for the offering. As on Monday, MicroStrategy own 92,079 tokens, worth nearly $3.8bn.

* On Monday, the Bitcoin price moved above $40,000 after Elon Musk, tweeted that transactions made in digital currency will resume once crypto mining is greener. Bitcoin’s price is currently approximately $36,000.

* Goldman Sachs is exploring ether options. The bank is planning on launching an ether futures and options trading platform for clients in the near future. Ether is currently trading at approximately $2,200+

* Billionaire hedge fund, Paul Tudor Jones, said he would ‘go all in on the inflation trades’ if the Federal Reserve is nonchalant this week regarding rising consumer prices. He would buy would probably ‘buy commodities, buy crypto, buy gold’.

Explainer: cryptocurrency exchange-traded products (ETPs)

What is a crypto ETP?

The pandemic has been fertile ground for the crypto market, as investors seek alternative, non-correlated assets which hedge against inflation.

Coupled with growing institutional interest, many believe that crypto exchange traded products (ETPs) have gained a foothold in the investment mainstream. 

What is a crypto ETP?

Exchange traded products (ETPs) are types of securities that track underlying securities, an index, or digital assets such as bitcoin, ethereum or polkadot.

These are products listed on an exchange.

ETPs are traded like shares (meaning their prices can fluctuate) and they are designed to replicate the return of an underlying benchmark or assets.

Why buy a crypto ETP?

ETPs are usually a low-cost alternative to actively-managed funds, otherwise referred to as a passive investment.

This is what Diana Biggs, CEO of Valour had to say on The Purse Podcast:

“The idea is to remove the complication out of gaining exposure to something like digital assets for investors who want to work through their broker, (who) want to trade their funds on regulated exchanges and who want to have the freedom… And for doing that through liquid assets, and who might not be comfortable with necessarily opening up an exchange at a crypto currency platform.

We know that there's been quite a few risks with some of them over the years who might not want to hold their own cryptocurrency.

Taking custody of a digital asset of a cryptocurrency can be quite complicated (because).. digital assets are decentralised. That means that if something goes wrong, there's no customer service helpline that you can get hold of.

If you send Bitcoin to the wrong address, there's no way for you to ever get it back”

Here is a summary of the key benefits:

* Buy through a bank/ a broker

* Trade funds on regulated exchanges

* No technical know-how needed

* Third party custody of your digital assets

Risks and government regulation

Attempts to list crypto-backed funds and products on UK exchanges have been hampered by the cautious attitude of regulators towards the digital assets.

In the UK, the Financial Conduct Authority (FCA) banned the sale of crypto derivatives and exchange-traded notes to retail investors from Jan. 9, 2021.

Arguably, the risks in the crypto derivatives market are comparable to the risks of the foreign exchange markets, which are also highly leveraged (ie ‘investors could lose all their money’).

However, in these foreign exchange markets, governments and regulators enforce maximum leverage limits for investors, instead of a blanket ban.

Bitcoin ETP: the first to launch on a London exchange

Digital asset securities provider ETC Group’s BTCE Bitcoin ETP began trading on a London exchange, Aquis Exchange on June 7.

Aimed at professional investors, the ETP is the first time a crypto-connected asset is trading on any UK market. All transactions (in sterling, Swiss francs, Euros and US dollars) will be cleared in Switzerland where crypto exchanges are legal and regulated.

Aquis said the listing of the Bitcoin ETP will allow the product to reach ‘a wider group of investors’. This follows the ETPs listing on Deutsche Börse’s XETRA platform in June last year as well as the Swiss Exchange in January.

Learn more:

* Watch this interview about the bitcoin ETP launched on Aquis Exchange.

***

NB: Please note that this article is for educational purposes only. We do not recommend products, services nor do we provide investment advice.

The Purse Podcast

How to negotiate: a job offer, with a male partner and as a female founder.

We cover the following topics on our conversation:

* What is negotiation?

* What is the cost of women not negotiating?

* Why is negotiation more challenging for women (or is it)?

* How can women negotiate:

* a job offer

* with their male partner regarding money

* as a female founder

* How do women overcome systemic bias in a negotiation?

* What books or blogs about negotiation do you recommend?

Listen on all podcasting channels including iTunes, Spotify and Anchor.

Coffee Break? Read This

* Why talented people don’t use their strengths

* Women working more hours during the Covid crisis than first thought, according to study

* Debt for women have been rebranded as a naughty little treat

* Switch to more home working after Covid ‘will make gender inequality worse’

* Medical Myths About Gender Roles Go Back to Ancient Greece. Women Are Still Paying the Price Today

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

The Purse provides content for informational purposes only, we do not provide product or service recommendations or 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