The care economy and housing bubbles

Companies with a higher percentage of female executives perform better than the market average, according to the analysis by the Goldman Sachs Group, Inc. The strategists behind the conclusion claim that this tendency could be observed “over more or less any period since the global financial crisis(…)”. The company is offering an investing basket called “Womenomics” that consists of companies with the most women at all levels. However, the analysts warn that the advantage of woman-led companies can’t be observed in all sectors and isn’t proven academically.

Economic modeling by the Victoria University Centre for Policy Studies suggests that the care economy budget investments in Australia would raise the GDP by 21 billion USD. The added value would come from the work of over 900 000 Australians who now provide unrecompensed care to the elderly, disabled, and children aged under five as they could take on paid work. The investment net costs would be less than one-fifth of the direct ones, as the rest would return to the budget with higher tax revenues.

Over half of the 25 major cities analyzed by the Swiss bank UBS are at risk of a housing bubble, or the prices of housing are overvalued. Hong Kong, Munich, Frankfurt, and Warsaw are among the cities that are the most overpriced. Paradoxically, the COVID-19 related government stimulus package prolongs that situation – as it allows to borrow money cheaply. Specialists expect housing prices to stagnate in the following year.