Pink's Bottom Line on Media, Money and Sports
Podcasts, mutual funds and the NBA
In today’s newsletter, I discuss podcasts, generational investing in mutual funds and key player moves in the NBA.
MEDIA: Podcasts and News
As podcasts grow in popularity in the United States and around the world, it looks like podcasts that feature daily news are really resonating with consumers.
According to a report from the Reuters Institute for the Study of Journalism, downloads of daily news podcasts hover around 10% of all downloads in the United States, which is a solid percentage, but it’s even more notable as only 1% of all podcasts are of the daily news variety.
Pink's Bottom LineThis report shows the importance and potential reach not only of daily news podcasts but of podcasts in general.
In fact, according to this report, 36% of Americans consume at least one podcast every month, and podcasts attract audiences that are often younger and well educated.
As such, look for competition to intensify among podcast producers in the coming months to reach this growing, influential, younger and well-educated audience.
MONEY: Mutual Funds
If you’re from Generation X, which includes those born from 1965 to 1980, chances are you’re more likely to own a mutual fund than someone from another generation, according to a report from Investment Company Institute (ICI).
More than half — 54% — of Generation X led households own a mutual fund compared to 47% of Gen Z and Millennial led households, those born between 1981 and 2012, and 44% of Baby Boomer led households, those born between 1946 and 1964, according to that report.
Pink's Bottom LineNotably, though, the percentage of Gen Z and Millennial led households that held mutual funds grew to 47% this year, well ahead of the 41% who owned funds last year, according to that report.
That suggests that the younger generation in America is saving money even in the middle of the coronavirus pandemic.
It’s also a potentially encouraging sign that the Gen Z and Millennial generations are already considering retirement planning as mutual fund investing often occurs via long-term retirement accounts.
SPORTS: NBA Moves
Although the NBA draft concluded last Wednesday, it was a trade, a free agency move and one unfortunate injury, not anything to do with the draft, that had the most impact in the NBA in the past week.
The NBA champion Los Angeles Lakers traded for Dennis Schröder, an outstanding point guard from the Oklahoma City Thunder, and picked up Montrezl Harrell, the current NBA sixth man of the year, via free agency.
Separately, all-star guard Klay Thompson of the Golden State Warriors suffered an achilles injury, which means he will miss all of the upcoming season.
Pink's Bottom LineThe Lakers’ moves shore up the team’s bench, and they now have become the clear favorites to win the NBA title next year.
Golden State, meanwhile, had title hopes before the Thompson injury but now are long shots to win it all next season.
According to the FanDuel Sportsbook, the Lakers are now +290 to win the NBA title followed by the Milwaukee Bucks (+550) and the Brooklyn Nets (+600) — Golden State is now +2500 to win the title.
(Note: For those unfamiliar with sports betting, the Lakers at +290 means that if a bettor wagers $100 on the Lakers to win the NBA title and the Lakers do win, that bettor would win $290.)
Jeremy Pink currently serves as an advisor to companies in media and financial tech. He is former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. Jeremy is also a former CNBC television executive in New York, London and Singapore.
The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.
(Newsletter Editor: Karina Pink)