1 query for spending cash post-Covid

The worst of the bans and shop closings are likely over – but you might want to think twice before you go on the Covid shopping spree.

The Delta variant has proven that the pandemic is still ragingwhich brings with it a new wave of financial uncertainty. Many people spent the pandemic paying off debts – the latest Federal Reserve data shows Americans shed an estimated $ 123 billion in revolving debt over the past year – meaning at least a lucky few have some extra cash to spare. And after a year and a half with the hatches closed, the temptation to output pulses is great.

For Joe Duran, Head of Personal Finance Management at Goldman Sachs, this is the crucial question for every American right now, regardless of wealth or status: If you have excess cash, should you start spending now or wait a little longer?

Duran has worked as an asset manager for the past 28 years and now manages $ 25 billion in assets with Goldman. Since March 2020, he says, his customers’ priorities have changed noticeably.

For example, the traditional advice of having a three to six month emergency fund may no longer be enough: Duran says its customers are now expanding their emergency nets to up to 14 months in spending. “No matter where you are on the wealth spectrum, we should all never forget what it felt like 14 months ago when the pandemic broke out and no one knew what was going to happen,” says Duran.

The next step is to determine if you have saved up enough to survive the latest wave of pandemics. Here is how.

When to spend – and when to save

The answer to Duran’s question is not as simple as “keep saving”.

For most people, the answer is very situational. The way Americans think about financial stability has changed radically in the last year and a half, says Duran – and even calls it “The big reset“in a recent InvestmentNews op-ed. Retail spending recorded one explosion in the spring, but those sales only started to decline last month. Meanwhile, consumer sentiment took a dramatic downturn and hit its lowest levels since 2011.

If your savings are depleted from paying off debt during the pandemic – or spending your cash reserves to survive – your focus should probably be on rebuilding and avoiding your emergency network Pulse outputs. Hitting this six month savings benchmark is a good start, but Duran recommends hitting a full year of savings before you start relaxing.

“It’s not necessarily a good idea to just spend everything like there’s more money coming tomorrow,” he says.

As soon as you have one year of emergency money, Read back on your long-term priorities – like buying a car, buying a home, or saving for retirement – before moving on to other types of expenses. Duran advises asking questions like:

  • How much do I need to retire comfortably?
  • Will I lose my deposit for the house or car I want?
  • Can I be unemployed for a year and cover my livelihood?

If you’re one of the lucky few who is content with your current savings, says Duran, there’s nothing wrong with spending on your personal happiness as long as you set parameters. Be clear about how much you can spend and how often to spend to avoid a long-term impulse buying habit.

“There will always be a new crisis,” says Duran. “We need to understand how each individual could affect our future behavior so that we can adapt to a new world.”

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Measures wanted to return girls to workforce post-Covid

Indian women wait in line for food in New Delhi.

SOPA pictures | LightRakete | Getty Images

The World Bank has warned that while the pandemic is recovering, critical measures must be taken to get women back into work and on the path to gender equality.

The pandemic has exacerbated existing gender gaps, and more efforts are needed now than ever to advance women, World Bank group global director Caren Grown told CNBC on Friday.

“While everyone was exposed to the same storm, it really affected men and women differently,” said Grown. “Squawk Box Asia. “

For example, although the death rate from Covid-19 was generally higher in men, women are more socially and economically affected, she said.

This is partly due to the disproportionate representation of women in heavily affected industries such as hospitality and tourism, but also to the additional care obligations that they normally face.

It has always been referred to as a shadow pandemic, but when we think about a recovery we actually need to initiate stronger responses.

Caren has grown

global director, World Bank Group

Even before the pandemic, the World Bank estimated that it could take 150 years for women to achieve gender equality with men. The health crisis has likely lengthened that schedule.

To overcome these differences, ensuring equitable access to vaccines is critical, Grown said. This includes making sure women have the time and resources to schedule their appointments.

In addition, further financial and nursing support is required to get the most affected women back on their feet and back to work.

Eventually, more safeguards against gender-based abuse need to be put in place, she said.

“What has been exposed during this pandemic is the increase in gender-based violence,” Grown said. “It has always been called the shadow pandemic, but when we think about a recovery we actually need to take stronger responses and preventative measures.”

Bay Space residents wish to save more cash post-COVID: survey

Bay Area residents say they are ready to save more for an emergency and pay off debt after the unprecedented emotional and financial toll of 2020 and the COVID-19 pandemic.

But maybe they treat themselves to this long-delayed trip first. Or a really nice dinner.

These are the results of a new survey by financial services firm Charles Schwab, which surveyed 750 Bay Area residents about their financial plans in February. Two thirds of those surveyed said they would see themselves as savers in 2020, and 82 percent said they would save more than they would spend in the coming year.

In particular, 51 percent said they generally want to save more, while 28 percent want to reduce debt and 26 percent want to build an emergency fund.

“Many people have had an emergency in their own life,” said Colleen O’Brien, branch manager of Charles Schwab Oakland. “Everyone knows they should save, but that kind of catalyst, this event, really got people to do it,” he said

The results are similar to the results of a new national survey by Bankrate and SSRS, who reported that around eight in ten respondents said they had at least one financial regret come out of the pandemic. Most often, not saving enough for emergencies resulted in not saving for retirement and taking on too much credit card debt. About a quarter said they plan to save more for emergencies, while a fifth plan to spend less.

“Emergency saving has long been the Achilles’ heel of financial security as too many Americans are ill-prepared for the unexpected,” Greg McBride, Bankrate’s chief financial analyst, said in a statement. “The sudden and deep recession sparked by the pandemic has driven that point home.”

The renewed interest in saving money comes after a year in which California hit 16 percent unemployment in April 2020, due to the pandemic and lockdown designed to slow the spread of the virus. As of March, there were still 696,400 more unemployed Californians compared to the same period last year, according to the Department of Employment Development.

More than half of the Bay Area respondents who took part in the Charles Schwab survey said they would be financially affected by the 2020 pandemic. About a third said their salary or working hours had been reduced. More than a fifth have been dismissed or on leave.

Even so, some residents are hoping to have fun after COVID. About 53 percent of respondents said they dream of traveling again, and a third plan to take a vacation. Another 20 percent are planning to break out money for dinner at a fancy restaurant, and 14 percent are throwing a party. The focus for people, said O’Brien, is now less on buying expensive items and more on shared experiences. Even she thought about going on a trip now that vaccinations are more common.

“Is there anyone who hasn’t?” She said. “Maybe it’s not a trip to Europe, but maybe it’s a trip we can all be on together.”

For those hoping to be considered wealthy, the survey found that Bay Area residents saw the amount they deem necessary from $ 4.5 million in 2020 to $ 3.8 million reduce this year. To be financially happy, residents say they need $ 1.3 million – up from $ 1.5 million reported in last year’s survey.

O’Brien said part of that decline could be caused by people who were lucky enough to stay busy during the pandemic and decided to retire early or realized they didn’t need that much money to keep in to retire as they had previously thought.

“What we found was that the focus shifted,” she said. “When you have all the time to save more, you become more reflective.”

In parts of the Bay Area, of course $ 4 million is barely enough buy a house.

Hungarian touring circus stays match for post-COVID opening | Leisure




Kevin Richter and his sister Angelina practice as Kevin Richter’s jumping group rehearses on April 20, 2021 in the Capital Circus in Budapest, Hungary. A state of emergency was declared in Hungary just one day before the troop’s spring season began last year. and pandemic restrictions that curb events and public gatherings have resulted in the circus not generating any income since then.




A small dog looks out of a car at the home base of the Florian Richter Circus in Szada, Hungary, April 20, 2021. Human and four-legged performers are preparing to bring Hungary’s largest traveling circus back onto the streets after the COVID-. 19 pandemic stopped their shows for more than a year.




The Hungarian traveling circus remains fit for the opening after COVID

Kevin Richter and his girlfriend Brigitta Sibrak sit in the door of their caravan after the rehearsals of Kevin Richter’s jumping group at the Capital Circus in Budapest, Hungary, on April 20, 2021. A state of emergency was declared in Hungary just a day before the troupe began last year’s spring season and pandemic restrictions restricting events and public gatherings have resulted in the circus running out of revenue since then.




The Hungarian traveling circus remains fit for the opening after COVID

Kevin Richter’s jumping group will rehearse on April 20, 2021 in the capital circus in Budapest, Hungary. A state of emergency was declared in Hungary just a day before the troupe’s spring season began last year, and pandemic restrictions are restricting events and public gatherings.I have suggested the circus has stopped generating income since then.




The Hungarian traveling circus remains fit for the opening after COVID

Florian Richter trains a horse at the home base of his circus in Szada, Hungary on April 20, 2021. Human and four-legged artists are preparing to bring Hungary’s largest traveling circus back on the streets after the COVID-19 pandemic suspended their shows for more than a year.




The Hungarian traveling circus remains fit for the opening after COVID

Florian Richter checks the feet of Sandra, a 43-year-old Indian elephant, on April 20, 2021 at the home base of his circus in Szada, Hungary. Human and four-legged performers are preparing to bring Hungary’s largest traveling circus back to the circus street after the COVID-19 pandemic halted their shows for more than a year.




The Hungarian traveling circus remains fit for the opening after COVID

A horse stands in an enclosure at the home base of the Florian Richter Circus in Szada, Hungary, April 20, 2021. Human and four-legged artists are preparing to bring Hungary’s largest traveling circus back onto the streets after the COVID-19 pandemic stopped its Shows for over a year.




The Hungarian traveling circus remains fit for the opening after COVID

An employee walks a horse at the home base of the Florian Richter Circus in Szada, Hungary, on April 20, 2021. People and four-legged artists prepare to get Hungary’s largest traveling circus back on the streets after the end of the COVID-19 pandemic have been doing his shows for more than a year.




The Hungarian traveling circus remains fit for the opening after COVID

Florian Richter checks the feet of Sandra, a 43-year-old Indian elephant, on April 20, 2021 at the home base of his circus in Szada, Hungary. Human and four-legged performers are preparing to bring Hungary’s largest traveling circus back to the circus street after the COVID-19 pandemic halted their shows for more than a year.




The Hungarian traveling circus remains fit for the opening after COVID

An employee jumps from hay bales before feeding horses on April 20, 2021 at the home base of the Florian Richter Circus in Szada, Hungary. Humans and four-legged friends are preparing to bring Hungary’s largest traveling circus back onto the streets after the COVID-19 pandemic stopped their shows for more than a year.




The Hungarian traveling circus remains fit for the opening after COVID

Kevin Richter’s jumping group will rehearse on April 20, 2021 in the capital circus in Budapest, Hungary. A state of emergency was declared in Hungary just a day before the troupe’s spring season began last year, and pandemic restrictions are restricting events and public gatherings.I have suggested the circus has stopped generating income since then.




The Hungarian traveling circus remains fit for the opening after COVID

Kevin Richter’s jumping group will rehearse on April 20, 2021 in the capital circus in Budapest, Hungary. A state of emergency was declared in Hungary just a day before the troupe’s spring season began last year, and pandemic restrictions are restricting events and public gatherings.I have suggested the circus has stopped generating income since then.




The Hungarian traveling circus remains fit for the opening after COVID

Horses wait in front of a training session at the home base of the Florian Richter Circus in Szada, Hungary, on April 20, 2021. From its off-season home in Szada, a small village outside the capital of Budapest, the Florian Richter Circus holds rehearsals in cautious anticipation, when the performances could start again.

From JUSTIN SPIKE Associated Press

BUDAPEST, Hungary (AP) – Human and four-legged artists are preparing to bring Hungary’s largest traveling circus back on the streets after the COVID-19 pandemic suspended their shows for more than a year.

The Florian Richter Circus is holding rehearsals from its off-season home in Sada, a small village outside the capital Budapest, in cautious anticipation of when the performances could start again.

The state of emergency was declared in Hungary just one day before the start of the troop’s spring season last year. The circus has not generated any income since then due to pandemic restrictions restricting events and public gatherings.

“It’s been almost a year and a half now, without anything. Of course I have to think as a businessman, as an artist and as a father at the same time, ”said Florian Richter, the owner of the circus. “I’m the engine of this circus, so I can’t give up, I can’t get emotional.”

In addition to human actors, almost 50 different animals, including the Indian elephant Sandra, eight camels, five zebras, three ponies and 32 horses, make up the members of the troop. Feeding the animals and paying their dog handlers has used up almost all of the circus’ financial reserves, and Richter said he still doesn’t know when the pandemic rules would allow performances to resume.

“It’s all money, money, money. A lot of money has to be spent because it costs a lot to maintain a ranch this size, “he said.

ThredUp will attraction to middle-income shoppers who can be spending cash on clothes post-COVID

ThredUp Inc. features analysts who say the company is poised to grow in the red-hot resale market.

ThredUp
TDUP, + 8.78%
is a Online second hand dealer that began to act 26th of March.

KeyBanc Capital Markets has initiated ThredUp shares overweighted with a price target of USD 22.

“[W]We believe ThredUp is well positioned as middle class consumers turn to apparel spending, ”wrote analysts, led by Edward Yruma.

Analysts and investors have turned their attention to spending behavior as the vaccine rollout continues. Clothing sales It is expected that this will be one of the areas that will get a boost after the end of the pandemic.

With prices roughly 40% below retail, the ThredUp marketplace offers middle-income buyers the opportunity to buy more at better prices.

ThredUp will also benefit from repeat business, according to the data compiled by KeyBanc.

Read: ThredUp CEO on IPO Day: Don’t Control Resale and Amazon’s Speed ​​is a Fading Trend for Young Buyers

And: America is slated to reopen on July 4th, and restaurants are poised to capitalize on the desire to “come out and gather,” says JPMorgan

“Our Key First Look (KFL) data suggests strong cohort retention and we believe that improving macro / apparel conditions will accelerate sales again.”

ThredUp is also supported by consumer trends that accelerated during COVID-19, including the move to e-commerce and consumers’ desire to shop sustainably.

On Tuesday, Lululemon Athletica Inc.
LULU, -2.24%
was the newest brand to offer Second-hand goods. Nike Inc. has opened a refurbished sneaker store last week. And Walmart Inc.
WMT, + 0.62%
and Gap Inc.
GPS, -2.16%
are just a few of the companies that have partnered with ThredUp over the past year as part of their own resale initiatives.

Second-hand competitor Poshmark Inc.
POSH, -2.12%
and The RealReal Inc.
REAL, -3.76%
went public in recent years.

Likewise: Poshmark will benefit from the move to used consumers cleaning their cabinets

“Cowen believes that department stores and mall retailers are likely to be stock donors in the next few years due to a combination of store closures and a greater shift in consumer preference to online and value-based concepts,” Cowen analysts wrote in a report dated Jan. March.

Cowen expects the online resale market to grow 25% at a compound annual growth rate (CAGR) and reach $ 70 billion by 2028.

Resale adoption is most robust among women between the ages of 18 and 34, according to Cowen Consumer Tracker.

According to Cowen, ThredUp, along with Poshmark and The RealReal, are among the leaders in the resale space, with smaller companies like Mercari and Rebag making the category more competitive.

“We see significant room for growth as resale becomes popular in all age groups and sustainability becomes a major issue. In addition, the flywheel effect of buyers becoming sellers and vice versa should support resale growth and promote customer loyalty, ”write analysts, led by Oliver Chen.

Wells Fargo initiated an overweight ThredUp stock with a price target of $ 22. Analysts, led by Ike Boruchow, see resale as a “potentially disruptive” sector of the retail market, and ThredUp’s business model can scale and “support high margins over the long term”.

Do not miss: Expect “eye-catching” sales from consumer companies when the calendar expires on COVID closings

Wells Fargo and KeyBanc analysts also highlight the efficiency of ThredUp’s operations.

“ThredUp’s network with highly automated distribution centers enables a solid order economy with an AOV of 69 USD [average order value]”Wrote KeyBanc.

“Low processing / distribution costs are very important given the low prices, and we believe this offers a significant structural advantage.”

ThredUp shares rose 11.1% on Tuesday, despite having slumped 27.6% so far this month. The S&P 500 Index
SPX, -0.66%
has risen by almost 4% so far in April.

Classes for profitable life post-Covid

The role of Matthew McConaughey, which CNBC seems to be most advising, is his role in “The Wolf of Wall Street” as broker and salesman Mark Hanna and his “Fugazi” speech before the Leonardo DiCaprio incarnation of the real “Wolf” Jordan Belfort.

In the movie, “Fugayzi, Fugazi. It’s a Whazy. It’s a Woozie. It’s Fairy Dust” is what counts as a valuable guide. However, the actor has been known to give more down-to-earth advice in real life, whether it be through a graduate speech or through his recent memoir, Greenlights.

McConaughey recently joined CNBC @Works summit To discuss basic life lessons that he learned in the Covid year and that he believes will be important to our culture as more and more people return to work and come into regular contact with others – with disagreements that are sure to be part of the post-pandemic Will remain in life. We should all be ready to gain a better understanding of the opposing views, says McConaughey.

And somewhere between his “wolf” character and a person trying to prepare for a post-pandemic world amid a booming stock market and expanding economy, he told CNBC from his Airstream trailer that in 2021 it would still be okay, Chasing after success – if done right. “I’m for money and I’m for fame, but how we get these things, how we treat others, how we treat ourselves, fills the soul’s account along the way and that’s a long-term ROI that I think CEOs need Double-down on more. ”

Here are some of the better life ideas McConaughey shared with CNBC’s Carl Quintanilla. (And for film buffs, check out the full video above if you want to know how that “Fugazi” speech became a piece of film history.)

1. Don’t go back to what you were before Covid.

As the world enters a post-pandemic reality, the actor and writer says we should all use 2020 to reassess what’s important to us rather than going back to who we were and what we believed before.

“If we turn the page and get our freedoms back into engagement, we’re not going to snap back. Hopefully that last year when we were forced to reevaluate what the hell is important to us in our own lives, Hopefully we will take these re-evaluations out of this year and evolve as people, including individuals, “he told CNBC.

It doesn’t mean instant change, but it means reflection.

“Hey, the first day may not have to be all right for everyone. No! We’re all coming out of our own independent world and reuniting, so let’s sit down. Maybe it has to be the first week back, let’s sit down and talk about what we’ve learned. ”

Oscar-winning actor Matthew McConaughey addresses the University of Houston at TDECU Stadium on May 15, 2015 in Houston, Texas.

Bob Levey / Getty Images

More than ever, it is a radical challenge to come together in the middle. Do you want to be radical? Come to the middle, I dare you!

Taking the time to reflect on how you have changed for the better over the past year will not only help you individually but also help you understand your place in this new world.

“”[2020] was there for a reason, there was hardship for a reason, there was sacrifice for a reason, there was a reason to learn. Let’s turn a page, not necessarily in the same chapter. Let’s turn a page and start a new chapter, “he said.

2. Learn to accept those we may disagree with.

Last year was again marked by increased polarization, for example in relation to politics and vaccines, and the conflicts have created divisions, but rarely growth. McConaughey says it doesn’t have to be that way.

“We can get away [from conflict] I still disagree, but basically, mostly, you and I are connected. You and I can still be connected even if we have opposing views and say we have similar expectations of each other; civil, bourgeois. We don’t do that right now, we illegitimate people and there is no way that can be the way forward. ”

In order to learn to accept conflict as legitimate, we must learn to accept opposing views.

3. Find common ground through facts.

Put simply, Americans must learn to agree on facts.

“We’re mistaken about what facts are. We don’t even argue about the same reality right now. So if we can agree on facts, I think we can build trust. Trust in facts can lead to trust in others, and then trust in us. ”

McConaughey believes that due to distrust of the media and leadership, we have trouble trusting ourselves. Learning to argue from the same facts will help. “If we can agree on facts, I believe we can build trust. Trusting facts can lead to us trusting others and then trusting ourselves.”

4. Be a meet-you-in-the-middle centrist.

McConaughey dared the American people:

“We have a misnomer for centricity. We need to remember that unity is not unity. I’m meeting you in the middle of the centrist. That has always been called, ‘Oh, that’s the gray area of ​​compromise, that is you ‘perceived. ” It is about nothing. ‘More than ever, coming together in the middle is a radical challenge. Do you want to be radical? Come to the middle, I dare you! ”

Predicting the way forward for the leisure business post-COVID

The COVID-19 pandemic caused great upheaval in the entertainment industry. Most theaters, concert halls, and cinemas were closed for at least a year, and television and film production ceased for months, resulting in hundreds of thousands of layoffs and large sums of money.

Not only those who work directly in production were affected, but also people who support the industry, such as caterers, florists and shipping companies. “It also affected workers in industries that were dependent on new and upgraded franchises, such as those who work in toys, books and clothing,” he said Gene Del Vecchio, Associate Professor of Marketing at USC Marshall School of Business and an expert in the entertainment industry.

While the film industry has had a number of negative impacts due to the pandemic, it wasn’t all bad. Del Vecchio noted that “stuck at home consumers are fueling a tremendous increase in streaming, particularly with the staggering profits from Netflix and Disney +,” as well as an overall increase in video games.

With many movie theaters either just reopening or unsure of the future, production companies have turned to these streaming services to make their debut Film slate. A major film studio, Warner Bros. Pictures, decided to put all of its 2021 films on HBO Max. This enables more people to stream new movies conveniently and safely from home, and at the same time begs the question: what does the future hold for cinemas, streaming services and film studios when the pandemic ends?

USC entertainment experts think streaming is the future

Del Vecchio believes streaming is more than a trend. It’s the future of entertainment. “COVID-19 has shown a large number of consumers that it is far more convenient and cheaper to stream movies and TV shows,” he said. “More studios will launch and stream films in cinemas at the same time, or stream them alone, which will dig deep into the theater business.”

This will lead to more investment by entertainment companies’ cash and labor in streaming services, leading to the long-term goal of attracting and retaining subscribers to streaming services.

COVID-19 has shown a large number of consumers that it is far more convenient and cheaper to stream movies and TV shows.

Gene Del Vecchio

Wendy Wood of USC Dornsife College for the Letters, Arts and Sciences believes that increased streaming is one of the pandemic habits most likely to persist. She told that Los Angeles Daily News “Ultimately, more people will be watching movies on Netflix at home because we’re used to it.”

According to Henry JenkinsAs a provost professor for communication, journalism, film arts and education at the USC Annenberg School for communication and journalism, cinemas still have a future ahead of them. He believes that in the long run, the pandemic will “benefit local, independent cinemas because they have greater customer loyalty, more choices based on regional preferences and interests, and more opportunities to organize film events than typical publishing strategies. ”

In essence, he said, theaters will be reserved for a more engaging niche audience that will continue to support the theaters for years to come.

American television could face increasing competition from foreign content

Speaking of television, Jenkins said, “The lowering of production standards through remote production practices has undermined one of the main advantages of American television in both the domestic and transnational markets: high production values. This situation suggests that we will see increased foreign competition for American eyeballs as long as the international content fits into popular genres. “

Americans have made it more convenient to stream non-English language content, such as the French mystery thriller series Lupine. The trend is likely to continue as international companies continue to produce content of a similar or even higher quality than the content created by American companies.

Regardless of what the future holds for the entertainment industry, USC experts believe these changes will have a lasting impact on American culture and media.

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