Credit Suisse issued a report that speaks to the heart of our Aging of the Population investing theme – the changing demands and needs of the aging population as well as their economic footing will lead to a sea change in spending as Boomers no matter what country they live in become conservers of wealth. The spending shift will translate into tailwinds for certain areas of the economy and pronounced headwinds for others.
China’s baby boomers are set to retire in the coming years, and they’re spending in different ways compared to the current retirees, according to a Credit Suisse report.
These baby boomers — defined in the report as those born in the 1960s — are more aware of having their health-care needs covered, and that’s set to lead to a “very sharp shift” in trends in the country, said Will Stephens, Asia Pacific head of quantitative and systematic strategy at the bank.
Effects from the aging population will be felt across a wide range of industries, from health care to insurance, and travel and e-commerce, according to the report, which surveyed 1,500 middle-aged and elderly consumers in China.
Stephens said the group was “the largest cohort in history” — or about 245 million Chinese, and highlighted the differences compared to the current generation of retirees.
“I think the key difference here is the sheer scale and size of the current generation of Chinese baby boomers that are going to be retiring over the next 10 years,” he said. “This boomer generation came of age right at the cusp of China’s inflection point into what’s essentially the greatest growth trend in history. So they have very different consumption patterns, different interests than what we see amongst the current retirees,” he told CNBC on Tuesday.
Citing the survey, Stephens pointed out that 39% of baby boomers expect that existing health-care social security plans will not likely meet their needs.
Source: Credit Suisse: China’s aging population will benefit healthcare, insurance
New data from the National Confectioners Association (NCA) has revealed sales of chocolate and candy in United States have increased during the coronavirus pandemic no doubt as folks looks to have at least a brief respite from things. This speaks to the heart of Tematica’s Guilty Pleasures investing theme while the NCA’s findings solidify the Thematic Leader Status for The Hershey Company (HSY) for that theme.
Overall sales of chocolate and candy have increased 3.8% with chocolate (+5.5%) and premium chocolate (+12.5%) outpacing the rest of the category, NCA data reveals, based on its analysis of sales performance from March 15, 2020 to August 9, 2020.
The grocery channel has become a key driver for chocolate and candy sales growth as consumer behaviors continue to evolve during the pandemic and more people shop at grocery stores. In the grocery channel alone, chocolate and candy sales are up 16.6% with chocolate (+17.9%), premium chocolate (+21.4%) and non-chocolate (+13.5%) all performing very well.
Source: Chocolate and candy soothe COVID-19 trauma, NCA reveals
A number of reports have named healthcare facilities and services as a prime target for cyber attacks, no surprise given the amount of personal data contained in their patient records. What the below report shows, however, is it took the identification of a different problem to reveal the the scope of data that was being made available, including in some cases social security numbers.
As one might expect, Utah Pathology has updated its security measures but it has also offered one year of free identity monitoring services to individuals affected by the incident.
The company wrote it discovered on June 30 that an unknown third party hacked into one of its email accounts in an attempt to redirect funds from the business. After discovering the attempted fraud, Utah Pathology secured the email account and launched an investigation.
Approximately 112,000 patients had their personal information exposed by a data breach at Utah Pathology Services.
The breach was discovered when the organization discovered “an unknown party attempted to redirect funds from within Utah Pathology,” according to a press release from the company. The attempted fraud led to the discovered of that patient information was accessible and included one or more of the following:
- Date of birth
- Phone number
- Mailing address
- Email address
- Insurance information including ID and group numbers and clinical and diagnostic information related to pathology services
- And, for a smaller percentage of patients, Social Security number
Source: Breach exposes data of more than 100K patients at Utah Pathology Services | KUTV
According to research from Ironscales, fake login pages are commonly used to support hacks and spear-phishing campaigns, and its researchers found more than 200 of the world’s most prominent brands were spoofed with fake login pages. In total, the company found over 50,000 fake login pages in the first half of 2020, with some able to be polymorphic and represent different brands. Per the company, the largest number of fake login pages were had at PayPal (11,000), Microsoft (9,500), and Facebook (7,000).
With the shift to work and learn from home as a result of the pandemic, we would not be surprised to hear more about fake login pages as well as the phishing attacks that lead people to them in the coming months. All in all, another aspect of the attacks that will continue to spur demand for cybersecurity and data privacy solutions.
It also found nearly 5% (2500) of the 50,000+ fake login pages were polymorphic, with one fake login able to represent more than 300 different login pages.
Ironscales’ Brendan Roddas explained polymorphism occurs when an attacker implements “slight but significant and often random change to an emails’ artifacts, such as its content, copy, subject line, sender name or template in conjunction with or after an initial attack has deployed.”
This allows attackers to quickly develop phishing attacks that trick signature-based email security tools that were not built to recognize such modifications to threats, ultimately allowing different versions of the same attack to land undetected in employee inboxes. In this research, Microsoft and Facebook led the list with 314 and 160 permutations, respectively.
Source: Fake Login Page Detections Top 50,000 in 2020 – Infosecurity Magazine
While our Aging of the Population theme tends to center on the demographic tailwinds with Boomers, data is starting to show the “near retiree” group – aged 55-64 – is under saved for their retirement. We at Tematica see this propelling our Middle-Class Squeeze investing theme, but make no mistake those under saved implications will ripple across our Aging of the Population theme, shaping a number of spending decisions along the way.
A recent report from Democrats on the Joint Economic Committee of Congress found that workers ages 65 and up were hit harder by unemployment than prime age workers ages 25 to 54. In April, older workers’ unemployment rate exceeded prime age workers by three percentage points, the biggest gap ever recorded, the research found.
And while that difference narrowed in the following months, the concern is that could be because older workers simply gave up looking for work.
Near retirees — those ages 55 to 64 — are not in a much better position. One-third of those workers have neither a pension nor a 401(k) plan or other employer-provided retirement savings plan.
Workers in that age group who do have access to those retirement accounts have a median of $88,000 saved, according to the report.
Source: Older workers have little saved toward retirement. Here’s how to fix that
In the days of yore, people picked up a telephone (you remember actually talking over the telephone?) and simply made a call by entering a phone number on the touchtone pad and voila — a telephonic connection began. With the development of the first mobile networks and phones, phone calling became portable, and basic texting emerged (anyone else remember texting using the “T9” approach?).
As mobile technologies and computing powered evolved, and their costs curves matured as the cost of transmission and storage of data continually fell, mobile phones gained new capabilities which in turn spurred demand for more advanced capabilities and services. In July 2008 Apple (AAPL) debuted its 3G iPhone and the iPhone App Store, and it’s fair to say we haven’t looked back as these devices and apps have increasingly become an integral part of our daily lives as we text, video chat, shop, send pictures, bank, and just about any/everything else.
5G will not only expand the market for RF semiconductor companies, but it will open up new markets for companies seeking to monetize their wireless IP patent portfolio.
Science fiction author Arthur C. Clarke is often quoted as saying “Any sufficiently advanced technology is indistinguishable from magic.” To make all the “magic” of modern telecommunication a reality requires not only mobile networks and devices but also all of the chips that make them work and provide connectivity. Underneath it all, companies have made enormous investments in developing and manufacturing core wireless communications technologies and when we dig deep enough, we find that at the heart of this mobile disruption is a series of technological innovations in wireless technology standards.
READ MORE HERE
Data privacy compliance will spur corporate spending, leading to an investing opportunity to those that recognize it.
The General Data Protection Regulation (GDPR) was adopted in April of 2016 by the European Union and became effective in May of 2018. At a high level, these regulations are fairly straightforward in their requirement to “Protect User Data,” but we see that, like any regulation worth its salt, compliance may not be as straightforward as advertised. As you’ll see, despite the complexities and sea of acronyms to be had, the bottom line is data privacy compliance will spur corporate spending, leading to an investing opportunity to those that recognize it. With that said, here’s a look at GDPR’s set of regulations affecting companies that collect data on citizens of countries within the European Union.
This legislation looks to lay out a framework that protects “fundamental rights and freedoms of natural persons and in particular their right to protection of personal data.” From the get-go, this is strong stuff. This is targeted at information that users have already provided (knowingly or unknowingly) to companies they interact with online.
READ MORE HERE: Emerging Technology Trend: Data Privacy Compliance Becomes Part of a New Normal | Nasdaq
A recent report from Check Point Security (CHKP) revealed a number of Amazon (AMZN) and Alexa subdomains were vulnerable to a Cross-Origin Resource Sharing (CORS) misconfiguration and Cross Site Scripting (XSS). The report goes on to say that by using XSS, an attacker would be able to acquire a CSRF token that would provide them access to elements of the smart home installation. Another reminder of the dark side to our increasingly connected Digital Lifestyle and one that also bodes well for those constituents inside the Foxberry Tematica Research Cybersecurity & Data Privacy Index
According to the researchers, these could include automatically installing Alexa skills without the knowledge of the user, acquiring a list of all installed skills, silently removing installed skills, acquiring the victim’s voice history with Alexa, and to even gain personal information.
This skill manipulation can allow for a modified version of an existing skill to be installed and then used by the user, one that could allow actions to be performed by the attacker, or for further acquisition of data from the user. It could even be possible for an attacker to install a skill to eavesdrop into conversations near an Echo device.
“Internet of Things devices are inherently vulnerable and still lack adequate security, which makes them attractive targets to threat actors,” Check Point writes. “Cybercriminals are continually looking for new ways to breach devices, or use them to infect other critical systems. This research presented a weak point in what is a bridge to such IoT appliances. Both the bridge and the devices serve as entry points. They must be kept secured at all times to keep hackers from infiltrating our smart homes.”
Source: Alexa hack granted attackers access to an Echo user’s smart home network | Appleinsider
One of the key differentiators in Tematica’s Cybersecurity & Digital Privacy investment theme and the Foxberry Tematica Research Cybersecurity & Data Privacy Index has been the recognition of the evolving data privacy regulatory landscape. One of those key pieces is the GDPR regulation, which includes consent for processing an EU citizens’ personal data must be informed, specific and given freely and confers rights on individuals surrounding their data, including ability to receive a copy of their personal information. It’s against that regulatory backdrop that Oracle and Salesforce are lawsuits in the UK and Netherlands.
The high profile nature of these companies and therefore these lawsuits along with the impact on third party cookie usage for ad tracking and targeting and the potential size of the fines to be had make these cases to watch.
The use of third party cookies for ad tracking and targeting by data broker giants Oracle and Salesforce is the focus of class action style litigation announced today in the UK and the Netherlands.
Non-profit foundation, The Privacy Collective, has filed one case today with the District Court of Amsterdam, accusing the two data broker giants of breaching the EU’s General Data Protection Regulation (GDPR) in their processing and sharing of people’s information via third party tracking cookies and other adtech methods.
The Dutch case, which is being led by law-firm bureau Brandeis, is the biggest-ever class action in The Netherlands related to violation of the GDPR — with the claimant foundation representing the interests of all Dutch citizens whose personal data has been used without their consent and knowledge by Oracle and Salesforce.
A similar case is due to be filed later this month at the High Court in London England, which will make reference to the GDPR and the UK’s PECR (Privacy of Electronic Communications Regulation) — the latter governing the use of personal data for marketing communications. The case there is being led by law firm Cadwalader.
Discussing the lawsuit in a telephone call with TechCrunch, Dr Rebecca Rumbul, class representative and claimant in England & Wales, said: “There is, I think, no way that any normal person can really give informed consent to the way in which their data is going to be processed by the cookies that have been placed by Oracle and Salesforce.
“When you start digging into it there are numerous, fairly pernicious ways in which these cookies can and probably do operate — such as cookie syncing, and the aggregation of personal data — so there’s really, really serious privacy concerns there.”
Source: Oracle and Salesforce hit with GDPR class action lawsuits over cookie tracking consent | TechCrunch
Whether it’s the comments from companies over the last few months or the monthly Retail Sales reports of late, there is little question over the accelerated shift to digital shopping as a result of the pandemic. New data shows this adoption is rather widespread, and in what may be surprising to some includes Boomers. Chalk it up to Mother Necessity, we see this as the intersection of our Digital Lifestyle and Aging of the Population investing themes. And we suspect that like most others when the Boomers realize the ease of digital shopping they may only selectively go back to brick & mortar shopping.
Social distancing and stay-at-home measures have upended the shopping habits of US consumers across generations, including older cohorts. In May 2020 data from CouponFollow, nearly half of US boomer internet users said they increased their digital spending since the coronavirus pandemic.
Source: Nearly Half of Boomers Have Increased Digital Spending Since The Pandemic – eMarketer Trends, Forecasts & Statistics