enRICHed: Volume 41
Almost August
Hi everyone! Happy last Sunday of July! This summer seems to be flying by and I am not sure how I feel about it. My therapist once told me that if I start to feel like life is happening to me that I should try to think about very specific things in my life lately that I have actively enjoyed. The first thing that comes to mind is my cousin’s homemade hot Pete’s coffee with soy milk and sugar. I drank a full mug (v unlike me) looking out their back window in Park City last week and felt complete bliss. Also, the game Empire, which I played for hours last weekend with a group of strangers and laughed until I thought I would pee myself.
Is this exercise easier when you can reference vacation? Yes, but it always works for me - so give it a try! Maybe we’ll do another YRBFF Community round up!
Updates from the Fed
The Federal Reserve announced it will continue increasing interest rates, pushing the target rate +.25 percentage points.
This target, 5.5%, is the highest in 22 years
If it seems like the Fed has been in the news for months with this back and forth, it is because this is the 11th rate hike in 17 months. But despite the lack of direction given by the Fed as to when these hikes are coming, the consensus has always been that inflation is too high.
During a news conference, the Fed Chairman said that although inflation has moderated since the middle of last year, hitting the Fed’s 2% target “has a long way to go.” Therefore, they will be taking a “meeting by meeting” approach as to whether the rate will be raised again in this year.
HYCU; the rate we are talking about, the fed funds rate, sets what banks charge each other for overnight lending. It then impacts many forms of the lending we take on in our own lives, like mortgages, credit cards, auto, small business and personal loans. As the fed funds rate goes up for banks, so does the interest rate we pay on all of our own debts.
Let’s Talk Spotify
Last quarter, Spotify added 36 million new monthly active users, a record breaking number for the company. Further, paid subscribers grew 17% YoY, which is also a record at highest second-quarter growth in paid subs.
Okay, so the market loved it? Actually, no. Spotify is still not profitable, despite being a public company, despite its growth, and despite cost-cutting efforts.
Wall Street has been putting more pressure on tech companies to be profitable, after years of valuation based on user growth alone.
HYCU; Spotify is raising the price of their subscription plans by $1-2 across many of its markets. It is the first price hike since the launch of the premium tier over 10 years ago. It’s only $12 a year for you, but multiplied by millions, Spotify is hoping that it will buoy them among struggles with podcast growth and music royalties.
Hollywood vs. Creators
An article in the Washington Post came out this week entitled, The creator economy was already exploding. Then Hollywood went on strike. Taylor Lorenz, one of the two contributing authors, has been covering media, the internet and all things TikTok for a while now and anytime I see her name, I read. Below are some takeaways of interest:
Remind me, what’s going on? The strike in Hollywood includes actors, writers, and crew - which is leading to halted production, delayed releases, lull of promotion, and financial losses for studios.
In the midst of the strike, the creator economy is capitalizing. Independent content creators have been finding their own success through TikTok, Youtube, and Instagram, without the need for Hollywood studios and money. But now, Hollywood is looking to them to potentially fill in the gaps if the strike persists for months.
Hollywood actors are taking to the Internet to warn creators about “scabbing” or taking jobs while everyone else is on strike. However, Lorenz and colleagues believe that the strike will push traditional “celebrities” into the creator category themselves.
HYCU; we are used to changes in the way we consume content, especially my generation who used to watch cable and use Netflix to rent DVDs. But this strike could speed things up even more, and it seems our favorite creators could be the beneficiaries this time around.
The Weekend has Changed
The economy is loving this. People are taking advantage of flexible work to take more trips and spend more on experiential outings. The head of commercial real estate economics at Moody’s said it best, “it really broadens your ability to do quite a bit more from afar.”
As more companies realize that work can get done from anywhere, more people are powering up their laptops in hotel rooms, on planes, and in airport lounges. Even the earlier trains out to Montauk are fuller with people typing away on their laptops.
HYCU; the Fed has been referencing economic resiliency, and you have to wonder if it’s partially because of this new way of living. Without having to pay for in-office expenses and commuting, on top of the time saved not having to be in the office 5 days a week, more people are making room for experiences like vacations, golf, concerts, weddings, and sporting events. Which means more money being spent in our economy!
Rich Tip of the Week: How to Invest for Beginners (video link w/ sound)
A CAUSE VIV LOVES: Our friends at Send Chinatown Love just launched a cookbook that highlights the culinary diversity of New York’s many Asian communities. Featuring 40+ Asian businesses from 18+ different cultures, the cookbook is beautiful and homey and a great way to support Asian- and immigrant-owned businesses. You can pre-order the book, Made Here: Recipes and Reflections from NYC’s Asian Communities, on their website now.
What do Barbie and Taylor Swift have in common? And why are they both having a moment? Michelle Goldberg writes for the NYT why women everywhere are craving the stories these women are selling.
A great piece of journalism by GQ: How to Take a Photo of your Girlfriend
Bumble BFF gets its own app (I am a bridesmaid in the wedding of a friend I met on this app so don’t knock it until you try it!!!)
