Weekly Buzz: Barbie, Taylor and Beyoncé: The SHEconomy

18 August 2023

This summer said it all: Beyoncé has been stoking inflation, Taylor Swift's superfans have been crashing Ticketmaster, and Barbie has been smashing records. And these go beyond pop culture – they’re signs of a rising SHEconomy. It’s echoing across all industries around the world, and could have a big impact on your investments.

Women are flexing more financial muscle

Women are becoming central financial players at home. In the Asia-Pacific region, 83% of women contribute to household income, with a majority making daily spending decisions. And with educated, career-focused women flexing increasing purchasing power and spending hard, they're making a massive difference in an increasingly wide number of sectors. And as the gender pay gap (Jargon Buster below, if you need a refresher) narrows, women are only going to play greater roles in the world economy.

And we’re not talking small numbers: in the US alone, women already control over $10 trillion in assets. And with record workforce participation, education levels that surpass men’s, and improving salaries, this number is predicted to triple in the next decade. It's more than a trend, it's a financial revolution: a rising SHEconomy.

Women-led businesses are crushing it

Despite a persisting disparity between the amount of VC funding that goes to female founders, compared to male ones, women are driving startups to multi-billion-dollar outcomes and changing the face of the successful founder. Just look at Kim Kardashian with her $4 billion Skims line of shapewear in the US, or Kiran Mazumdar-Shaw’s $6 billion Biocon Biologics in India. These are important success stories: they’re creating jobs, setting trends, and reshaping business landscapes. And this momentum is only likely to accelerate.

Women are rocking investing

When it comes to investing, women do it differently. Women fund managers tend to outperform male counterparts, and they lean towards socially responsible investing (take our Environment and Cleantech Thematic portfolio as an example for sustainable investing). This trend has led to the rise of investment funds and products that align with female values. And with more women taking control over their financial future, this could have serious implications for both the investment management industry and the financial markets.

Another reason female investors outperform: they trade less. A report by Vanguard showed that men tend to move in and out of investment positions 50% more often. Besides transaction costs, the adage of time in the market, not timing the market, proves its worth here – and it’s a sentiment we echoed in our 2023 H2 Market Outlook.

This article was written in collaboration with Finimize.

🎓 Jargon Buster: Gender pay gap

A gender pay gap refers to the difference between the average earnings of men and women. If men, on average, earn more than women, even though they're equally skilled, and doing similar work, that's a gender pay gap. It highlights the unequal distribution of pay based on gender discrimination. Closing the gap brings us closer to a fairer society, and unlocks productivity, innovation, and economic growth overall.

✨ StashAway’s 2023 H1 Returns and H2 Outlook articles are both out now!

We’re halfway through 2023 now, and it’s been rather hectic. From mini banking sector crises in the US and Europe, to the emergence of AI hype – it’s safe to say that we’ve gone through a lot so far. But there’s no need to feel out of the loop, we’re here to shed some light:

Our Returns in the First Half of 2023 - For the first half of the year, we’ve taken the bull market by the horns, and safely. See how our portfolios have performed year-to-date June 2023.

2023 H2 Market Outlook - For the second half of the year, we’re taking a step back to look at the bigger, longer-term picture, and why we see silver linings for future returns.

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