What for the Classes of ’20 and ’21? 🎓

Table of Contents

What for the Classes of ’20 and ’21?

The virus closed schools, colleges, and universities just as it closed most other institutions, and more than 1.6 billion students worldwide pulled a massive sickie.

It’s not always the case, but the more educated you are, the more earnings you should rake in over a lifetime. If a generation of students haven’t been swatting down at home (which they haven’t because most exams are off), the World Bank forecasts more than ten-billion-dollars in lifetime earnings have already been lost into the ether.

The income shock from lockdown, evident in jobless claims, is also going to stifle plans to get expensive educations, especially for marginalised groups.

The actual content of most degrees is available on the internet. You’re paying 50,000 dollars per year to make it official and get the scroll, for the social life on campus, and for the connections. If professors are planning lectures on Zoom, most of that won’t be available, so millions of gap years will be declared until things return to how they were.

The impacts of deferred students cannot be understated. The majority of tuition fees are paid by international students who’ll almost certainly be late to class, so half-built show-off sporting facilities and plush accommodations to attract them are now in jeopardy. Most college campuses are now stalled building sites.

Colleges need to cost-cut, and interestingly, start thinking about investing in the markets. The majority of colleges get tax relief for investing an endowment. Harvard’s endowment is $41 billion, for example!

It’s a dilemma of allocations between asset classes, stocks or bonds or bills or real estate, and where to invest geographically, rather than a question of which individual stocks to pick. However, the potential is there for a college to withdraw some emergency funds if those endowments have performed well enough. Investing to the rescue!

To the graduating class of 2020, congratulations, and good luck, the job market is tight as hell right now, but fingers crossed it recovers soon. We’re keen to hear your pandemic stories from school or college, perhaps you’re taking clutch exams right now, or you’re graduating, let us know!

Share:
More Posts
PGA Tour Enters Investment Talks 💪

As reported on Thursday, both Endeavor Group and Fenway Sports have displayed interest and begun discussions to provide investment in the PGA Tour.

Nike Just Didn’t Do It 📉

Providing one of the biggest earnings reports of the week, $140 billion shoe and clothing retailer Nike posted a significant slip.

Market Recap – September 28th 💰

After the 10-year Treasury yield bond fell off from its 15-year high, investors added some value back into the market, focusing all short-term attention on Friday’s PCE price index reading.

The Crude Oil Bust 🛢

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.