#2 How Taylor Swift is Saving the US Economy 🎤

Swift saving the US from recession, the simplest option trading strategy, & a stock benefitting from Chandrayaan 3

📌 What you’ll learn in <10 minutes

  • How Taylor Swift’s Eras Tour is saving the USA from a recession

  • A simple, rule-based options trading strategy to help you identify & capitalize on market trends

  • A stock likely benefitting from the Chandrayaan 3 success & other new stuff at Upsurge

🎼 From pop influence to economic influence

Taylor Swift’s Eras Tour has made her an economic influence in addition to being one of the most popular artists of our generation. Let’s see how her 20-city tour brought economic prosperity and revived local businesses in the US:

How does a tour help the economy?

The Eras tour made over $1 billion gross with just the first leg of her show in the US, along with boosting consumer spending in the cities where she performed, feeding their economies. Let’s see where those numbers came from:

Ticket Sales & Merch: Taylor sold an astounding 2.4 million tickets on the first day of her Eras Tour crashing the Ticketmaster website. Ticket sales alone accounted for an impressive average of $13 million per night while merchandise sales were equally successful, crossing $100 million.

Travel & Hotel Industry: Train & bus passenger counts surged in tour cities, and special trains were announced to combat the lack of transport in places like Greater LA, Sacramento, and Mexico City for concertgoers. The Federal Reserve of Philadelphia announced that May was the strongest month for hotel revenue for the city since the pandemic. The spending spree caused by Taylor fans added $98.2 million in room revenue. Have a look at the recorded concert day ADR premiums:

A surge in temporary employment: Demand for flexible labor in the vicinity of a stadium also shot up to 1,000% of normal levels owing to the record-setting crowds that the tour attracted.

Swift-themed menus, activities, and events have benefitted various restaurants, bars, and parks in the different cities the Grammy-winning artist performed.

Swifties around the world spend beyond their means to see their pop icon live since they view it as a once-in-a-lifetime experience. Including food, accommodation, and other expenses at the venue, fans have reported spending an estimated $1300-$1500 each!

Research house QuestionPro says that if the current spending pace continues, the entire tour is expected to create an impact of $4.6 billion, more than the GDP of 30 countries!

The ‘tourflation’ effect

When demand exceeds supply, people are willing to pay more for the same goods and services. A tour like Taylor’s creates a sense of urgency amongst fans and sends people into a spending frenzy.

This gives rise to inflation, an increase in the overall price level. Inflation levels are represented by the Consumer Price Index (CPI) which measures the prices of a basket of items like food, energy, commodities, housing, transportation, and other goods & services.

Here’s how the Eras Tour is contributing to the overall inflation levels:

  • While the Eras tour tickets cost between $49-$499 (plus taxes) on official sites, its average resale cost was found to be a whopping $3,801; reflecting the population’s willingness to push its spending capacity.

  • Although entertainment spending would not be a major contributor to inflation numbers, heightened prices of food, beverages, hotel rooms, and travel have certainly contributed to inflation metrics since they represent a larger chunk of the CPI calculation. Fans are spending upwards of $10 on bottled water and $20 on chicken tenders at the venue.

Remember when Beyonce’s Sweden tour in May contributed 20 of the 30 basis points added to inflation owing to increased hotel and restaurant prices?

How much did Taylor make (and donate)?

Swift’s net worth is estimated to have been increased by $170 million due to the Eras tour. For those of you wondering how much the singer pocketed with her tour till now, here is a summary:

  • Gross Tour Earnings: $1 billion

  • Sources of revenue: Ticket sales, merchandise, sponsorships

  • Average Earnings per night: $13 million

  • Merch sales: $100 million +

  • Taylor’s estimated total earnings from the tour: ~$300 million

The star also made headlines for giving a generous bonus of over $55 million to her crew members - which included caterers, dancers, and thank-you gifts of $100,000 to her truckers.

Getting invites from Presidents

Some nations haven’t made it to Taylor’s tour list yet, but world leaders are determined to catch her attention to try and replicate the economic success of her shows in their own cities.

Chilean President Gabriel Boric and Budapest Mayor Gergely Karácsony both took to social media to invite Taylor to their respective nations. The most iconic request, however, was Canada’s Justin Trudeau’s. Tweeting like a true Swiftie, he said:

Be it pop stars saving the economy, or actors starting venture funds; the entertainment industry is using their influence to stir a change in the financial sector like never before.

Would you agree that the influencer era has just begun? With all said & done, will influencers also start having an impact on the overall economy?

📉 A simple, rule-based strategy - Price Action Option Trading by Mr. Kaushik Akiwatkar

Known as ‘The Noiseless Trader’, Mr. Kaushik Akiwatkar explains his rule-based method of easily identifying market trends for Options Trading using price patterns and market structures.

Here’s how it works ⬇️

1/ First, we identify the market trend to determine the directional position of our trade. A bullish trend is formed when the majority of the people are optimistic about the market and a bearish trend comes into being when fear creeps into the majority of the participants and they view markets negatively.

2/ Then, we plot a market structure on the chart by connecting different highs and lows, similar to plotting swing tops and swing bottoms based on the Dow Theory.

Bullish & bearish market structures may look like these 👆🏼

3/ Next, we look at moving averages as a confirmation of the market trend. A bullish trend can be spotted when prices trade above the moving average line and a bearish trend can be spotted when prices trade below the moving average line.

4/ Finally, we look at the conjunction of price patterns and moving averages to select an investing strategy best suited for prevalent market conditions. Strategies exist for bullish, bearish, & sideways markets.

Taking a total of 28 trades in 2022 as per the strategy discussed, if we traded 1 lot of Nifty, we would have booked 4,345 points making Rs 2,17,250 per lot 😍

Learn the complete price action options trading strategy from Kaushik Akiwatkar himself, where he’ll teach you step-by-step, how to use market trends and simple indicators to select the right options strategy and successfully execute winning trades in different market environments:

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