A gilt-ed cage
Also, Rod Stewart.
Well, it’s been a week for the UK market! In case you missed it, the pound has fallen in value, and government bonds (gilts) are being sold off.
Essentially, investors think that the UK is not going to be able to pay back its debts (given the investments in public services, and rising costs), and, therefore, the cost of borrowing has gone up. And the UK has become a more risky investment.
There are knock-on effects. And not the good kind.
This is a classic demonstration about how economics works, and the role of the ‘invisible hand’ that operates in today’s ‘free markets.’ When institutions are set up to reward growth (and only growth), any steps being taken to invest in societal foundations will be penalised. Because, although they may result in growth a bit further down the line, that’s not an appealing enough proposition.
While it’s a big story, it’s important to put things in context.
The pound is the lowest its been in 14 months (which isn’t as big of a deal as, say five years). It was this low when Liz Truss crashed the economy with her mini Budget.
News about how this ‘debt market sell off threatens to push up mortgage costs’ is a good headline — but it actually refers to people who have been on three, four, or five+ year mortgages that are up for renewal this year. Because the interest rate changes over these time periods haven’t been passed on to all mortgage owners yet.
1. Almost half of Brits don’t invest - because they think it’s only for the super rich
(And a third say they didn’t start taking any active interest in their pension until they were 36 or older).
This is why I do this work!
One of the biggest misconceptions about investing is that it’s binary; you either do it or you don’t, and if you do it, you do it on a massive scale.
This is obviously untrue.
People’s understanding about how different types of investments work, and their general attitudes to risk will determine if and how (and, hopefully, when) they make investments. And how do they make more informed decisions?
The Internet — you need to know what questions you have, and be able to think critically about the information you’re receiving
Social media — patchy and content is served to you
Your bank — traditional banks will offer opportunities to talk about their products and, since they all have investment products (like a stocks and shares ISA), they can be helpful people to take your questions to. But again, you need to know what you want to learn
Financial advisers — typically expensive, and you are very aware that they are trying to sell to you
Money Brunch (‘lol’)
Crucially, there are no right or wrong answers. But, as you gain experience, you get a better understanding of what might be more right, or more wrong, for you.
2. How you communicate signals your seniority
Doing the job isn’t enough. Talking about what you do and the impact you make, is a key skill.
Talk about the outcome and the why, not the input
The more you describe the “how”, the more junior you’re perceived to be
A senior leader will make a complex point simple to grasp for anyone whether they are close to the work or not
3. Household spending on groceries hit a record high this Christmas
What cost of living crisis?
Tesco and Sainsbury’s reported their biggest ever Christmases
And so did discount supermarkets Aldi and Lidl
Biggest ever!
Households spent an average of £460 on groceries over Christmas.
“The last three months of the year are known as the golden quarter in the retail industry as households go on a spending spree for presents and food.”
From an investing standpoint shares in retail companies are some of the more volatile. They’re affected by manufacturing challenges, supply chain issues, consumer demand and seasonal trends.
Links!
Money
The Wall Street guy who moonlights as a stripper — this is a seriously intense side-hustle. It covers growing up without much money (and ingrained frugal money habits, even if you’re earning $300k annually), doing something you enjoy, working at your craft, building up to a level where you can go full-time on your business, and juggling everything in your life.
am I an asshole for wanting to date someone who makes more money than me? Errr depends.
Predatory marriages — where people take advantage of vulnerable, elderly people — are on the rise 😢
Cash makes surprise comeback amid 4.6% annual rise in ATM withdrawals.
57% of people with housing costs and experiencing housing pressures reported being kept awake at night over the past year. The main reasons; high rents, poor conditions and the risk of eviction.
MPs launch Lifetime ISA review to assess if the account is still 'fit for purpose.’ It’s something Martin Lewis has been calling for for a while. The thresholds haven’t changed since it was first introduced in 2016, and people are losing money by having to pay penalties to withdraw ear-marked for their first property purchase.
Life
Ticket resale prices for live UK events is to be capped in crackdown on touts - and dynamic pricing is going to be targeted too. The Viagogo and StubHub platforms are to be hit by a cap of 30% over face value. Dynamic pricing is used everywhere but the Oasis tour has been the go-to example of how it works in the entertainment industry; “fans who queued online for tickets were shown a much greater price than advertised at checkout, with limited time to decide on the purchase.”
Pre-packaged hard boiled eggs are increasing in appeal. Tesco sold 10 million last year. Pret sells 1 million annually — and it’s been selling the product for a decade now.
Wildfires and hurricanes could make parts of U.S. uninsurable. California and Florida are leading the way :( Related, a message from L.A. resident and writer Ann Friedman — “Can you do three things for me? Squeeze your beloveds extra tight. Take a moment to sit still and appreciate the safe haven of your home. Inhale deeply and let the clean air fill your lungs. If you can, do these things all week long. No, scratch that. Do these things every day, forever.”
Stop pretending Meta cares about free speech.
Rod Stewart turned 80 yesterday. 80! He’s been performing all his life, starting with being in bands (including one with The Rolling Stones’ Ronnie Wood). I know this because I was watching his old performances from the BBC’s programming last night (it was on TV). Such bangers! Also, the fashion!
If you’re looking for something to listen to this week, why not join me in delving into his discography.
Know someone who would enjoy this in their inbox on a Sunday morning?