My name is Ashley Yen, and I worked at New Capital as an intern for two weeks in June 2021. During this time, I gained valuable experience in the financial management business and had the opportunity to read the book, The Four Pillars of Investing, by William Bernstein. From learning about market behavior, to data analytics, to common investment mistakes, New Capital showed me that there are many different components to running a business.  I’m so grateful for my time here and appreciate all the support and advice given to me.

Outside of school, I am an Online Editor-in-Chief for the school newspaper and the founder of Kits 2 Kids, a nonprofit organization that provides STEM resources to underserved children, hospitalized children, and girls, with the goal to inspire these kids to be interested in STEM. I also enjoy golf, baking, and spending time with friends and family. 

One of the tasks assigned to me during my internship at New Capital was to review infographics from Visual Capitalist and select several pieces that I found most interesting. With each infographic, I’ve included both an overview of what the respective infographic contains as well as a statement on why I believe that information is important. 

What The Data Says About Wealth Inequality

Today, the top 1% of US households own 31.2% of total wealth. While wealth inequality peaked in 1910 with the top 1% of households owning well over 40% of all wealth, it has continued to increase in the last few decades. Data from the Federal Reserve shows that between 2009 and 2020, every wealth category amassed wealth, but the top 1% of households experienced the highest annual growth (6.54%). The longest bull market in history, which lasted from March 2009 to February 2020, was a major driver in the recent divergence because wealthier households own the most corporate equities and mutual funds. 

Especially with the pandemic disproportionately impacting low wage workers, wealth inequality remains an urgent problem. The economic recession caused by COVID-19 has been particularly devastating to lower income families because the accommodation and food service sectors, which typically employ low wage workers, were most affected. This recent trend has encouraged policy makers to search for solutions to reduce wealth inequality in the US.

Visualizing the Rise of Women on Boards of Directors Worldwide

Although the number of women on corporate boards has risen, the rate of increase has slowed for three of the past four years. MSCI research of All Country World Index (ACWI) outlined three projection scenarios for the decades ahead: a progressive scenario with increased growth rate, a business-as-usual scenario with stable growth rate, and a deceleration scenario with continued decline of growth rate. The ESG ecosystem considers 30% representation to be a critical milestone to reaching gender parity on corporate boards of directors, and these scenarios demonstrate that this goal could be reached as early as 2039 or as late as 2070. Emerging markets have also exhibited a decline in all-male boards worldwide and an increase in companies with female CFOs. Yet, the number of women in these roles still lags significantly behind the number of men. 

Research suggests that the pandemic has negatively impacted women’s careers more than men’s, potentially undoing several years’ worth of improvements. However, developing nations still show promising results in gender diversity.

The Gen Z Unemployment Rate, Compared to Older Generations

Unemployment rates have risen across the world due to the pandemic, but job loss in OECD countries has impacted Gen Z (15-24 year olds) significantly more than other generations. This visual demonstrates how Gen Z has an unemployment rate of nearly 2x more in almost every country. This is because Gen Zers are overrepresented in service industries, such as restaurant and travel work, which were hit the hardest due to COVID-19. 

Due to the pandemic, Gen Z is missing out on formative years of gaining experience and training, and some economists are anticipating that this will have long-term negative impacts. Studies have shown that long periods of youth unemployment can reduce lifetime income by 2%; in addition, Gen Zers may be forced to accept lower paying jobs currently, setting them on track for lower earnings over their lifetime. However, as a result of growing up during the 2008 recession and during a pandemic, Gen Z may be more risk averse and financially conscious than other generations. Furthermore, they are the first digital and global generation, meaning that they could pioneer location-independent careers, create innovative revenue streams, and find new ways to define work.

5 Drivers Behind the Sustainable Investing Shift

Sustainable investing in the US smashed records in 2020 as estimated net flows reached $20.9 billion in the first six months alone. This infographic shows the main drivers of this shift.

First, while all generations have become more interested in sustainable investing since 2015, this interest is significantly higher for millennials. A recent report by Shroders demonstrates that these days, the majority of investors will not invest against their personal beliefs, even if returns were theoretically higher. The top environment-related categories attracting investors include plastic reduction, climate change, and community development, with institutional investors being the most most responsible for the growing momentum towards sustainable investing. These investors use webinars, conferences, third party labels, and social media to share ideas and source information. Lastly, although negative screening—avoiding investments in “sin” stocks such as tobacco or fossil fuels—remains a popular strategy, most organizations actively integrate sustainability into their portfolio. 

Despite the COVID-19 pandemic, sustainable investing has been resilient to change, even exceeding expectations in 2020. With millennials accumulating wealth, data suggests that sustainable investing is here to stay.

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