Flip/Flop, Pay Transparency

3.07 | "Gratitude is the compass that guides us to discover hidden treasures amidst the chaos of life, reminding us to cherish every step of the journey." - unknown

News and Numbers

Markets this Week:

• S&P 500 is down 2%.

• NASDAQ 100 is down 3%.

• Bitcoin-USD is up 9%.

• Ethereum-USD is up 6%.
   

Headlines from this Week:

• Elon Musk and Mark Zuckerberg agree to cage match.

• Victor Wembanyama was drafted first overall by the San Antonio Spurs. The 7 foot 5 inch Frenchman is the most hyped prospect since LeBron James.

• Andrew and Tristan Tate have been charged with rape, human trafficking and forming a criminal gang to exploit women, Romanian prosecutors said.

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Finance

By Vlad Estoup, B.Comm. (Finance); working in Ethereum cybersecurity

Flip, Flop.

The Federal Reserve's monetary policy has long been a subject of much speculation, anticipation, and scrutiny. However, recent whispers from inside the Federal Reserve hint that the banking institution may be poised to lower interest rates much sooner than previously announced. In stark contrast to the Fed's claims of persistently high rates, analysts predict that an impending shift in the Consumer Price Index (CPI) could catalyze a rapid change in their stance.

For many months now, the Federal Reserve has been unyielding in its commitment to keep interest rates at elevated levels to rein in the rampant inflationary pressures we have been witnessing. This commitment is underscored by the belief that elevated inflation is more than just a transitory phenomenon triggered by the revival of economic activity post-pandemic.

However, recent indicators suggest a significant slowdown in inflation rates. More specifically, preliminary data on the CPI – a key metric for assessing inflation – suggests a downtrend, which implies that inflation might not be as persistent as feared. Consequently, it seems plausible that the Fed might re-evaluate its stance on maintaining high interest rates.

What does this mean for the markets? The decision to lower interest rates sooner than previously announced could have various implications:

• Equity Market Response: Lower interest rates typically make borrowing cheaper, which encourages spending and investment, thus driving growth. This is generally positive for the equity markets. However, the change would come as a surprise, and markets typically dislike surprises, leading to potential short-term volatility.

• Bond Market Response: Lower interest rates generally lead to higher bond prices, benefiting bondholders. However, existing bonds with higher interest rates might become more attractive, leading to a potential shift in demand towards those securities.

• Currency Market Response: Lower interest rates could weaken the US dollar, making foreign goods more expensive, which could offset some of the downward pressure on inflation. Conversely, a weaker dollar could boost exports, which would benefit the economy.

• Economic Growth: The most direct impact of lowering interest rates is stimulating economic growth by making borrowing cheaper for businesses and individuals, spurring investment and consumption.

While these implications offer a general guide, it's essential to bear in mind that the actual outcomes will depend heavily on the magnitude and timing of the interest rate change. Also, how the Fed communicates its decision will significantly influence market reactions.

It's also worth noting that the Fed's potential pivot from high interest rates is not without risks. Lowering interest rates could potentially fuel asset bubbles, and if the CPI decline is only temporary, this could lead to a sharp rise in inflation later on.

In conclusion, while we await the official announcement from the Federal Reserve, it seems that the financial landscape could be on the brink of a notable shift. Both investors and consumers need to brace themselves for the possible implications of this change. Regardless of how the situation unfolds, it serves as a reminder that in the dynamic realm of monetary policy, nothing is set in stone. It's a game of constant recalibration and nimble adjustments to keep the economy on a steady path of growth and stability.

This is not financial advice and you should always do your own research before investing in any securities or cryptocurrencies.

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Sci-Tech

By Keyann; Software Engineer in Web3

useCallback Hook

In React, optimizing performance is crucial to ensure smooth rendering and efficient resource utilization. The useCallback hook offers a powerful tool to optimize functional components by memoizing functions. At first glance, however, this concept isn’t so intuitive to understand or use, so let’s dive in.

• Understanding useCallback

  The useCallback hook in React allows for memoization of functions, ensuring that the same function instance is returned unless the specified dependencies change. This memoization technique optimizes performance by avoiding unnecessary re-creation of functions on every render.

• How useCallback Works:
  When a function is defined within a component, it gets recreated on every render. This behavior can lead to unnecessary re-renders of child components if new function references are passed down as props. By using useCallback, React memoizes the function and returns the same function reference unless the dependencies change, thereby reducing unnecessary re-renders.

• When to Use useCallback:
useCallback is particularly useful when passing callbacks to child components that rely on reference equality to determine whether to re-render. By memoizing the callback function, you can optimize performance and prevent unnecessary re-renders, especially in complex component hierarchies.

• Benefits of Using useCallback

  • Improved Performance: useCallback helps avoid unnecessary re-renders of child components caused by passing down new function references on each render.

  • Efficient Resource Utilization: By memoizing functions, you reduce the computational overhead of creating new function instances repeatedly.

  • Better User Experience: Optimized rendering and reduced re-rendering can lead to smoother interactions and a more responsive application.

Code Example:
Here's an example showcasing the usage of useCallback:

import React, { useState, useCallback } from 'react';

const ParentComponent = () => {
  const [count, setCount] = useState(0);

  const handleClick = useCallback(() => {
    setCount(count + 1);
  }, [count]);

  return (
    <div>
      <p>Count: {count}</p>
      <ChildComponent onClick={handleClick} />
    </div>
  );
};

const ChildComponent = React.memo(({ onClick }) => {
  console.log('Child component re-rendered');
  return <button onClick={onClick}>Increment</button>;
});

In this example, the ParentComponent renders a count state and a memoized handleClick function using useCallback. The ChildComponent receives the handleClick function as a prop called onClick. The ChildComponent is wrapped with React.memo to optimize performance by re-rendering only when necessary.

By utilizing the useCallback hook, React developers can optimize the performance of their applications by memoizing functions and preventing unnecessary re-renders. By avoiding the recreation of function references, React can efficiently reconcile the virtual DOM and improve rendering performance, resulting in a smoother user experience.

Remember to use useCallback judiciously when you encounter scenarios where passing down functions as props to child components can cause unnecessary re-renders. By employing this optimization technique, you can achieve faster, more efficient React applications.

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Paradigm Shift

By Roman Kuittinen-Dhaoui, BBA, CPHR Candidate; working in Human Resources

Pay Transparency

Pay transparency laws around the world are forcing employers to adapt.

In British Columbia, Canada, effective November 1, 2023, employers will have to do three things. First, employers must post the rate (e.g., $30/hr) or range (e.g., $60,000 - $70,000 per year). Second, employers cannot discipline employees for asking about their pay and discussing their pay with anyone inside or outside the organization. Third, employers cannot ask pay history questions (e.g., how much do you make for your current job) which is different than asking a candidate how much they expect to make for the position they applied to. Finally, employers will have to submit pay transparency reports.

Traditionally, employers didn't disclose pay bands or individual salaries to employees due to several reasons:

1. Confidentiality: Salary information was considered confidential and treated as a private matter between the employer and the employee. Organizations believed that sharing this information could create unnecessary tension, comparisons, and conflicts among employees.

2. Power Dynamics: By keeping salary information hidden, employers had more control over compensation decisions. This lack of transparency made it easier for them to negotiate salaries individually with employees and potentially pay different amounts for similar roles.

3. Competitive Advantage: Some organizations believed that keeping salary information secret provided them with a competitive advantage. By not revealing salary details, they could potentially recruit and retain employees at lower costs or maintain an advantage during salary negotiations.

4. Market Disparities: Salary bands and individual salaries can vary significantly based on factors like experience, education, performance, and negotiation skills. Employers may have feared that disclosing pay bands would reveal disparities that could be perceived as unfair or demotivating to employees.

5. Privacy Concerns: Employers also cited privacy concerns as a reason for not disclosing salary information. Salary is considered personal and sensitive information, and employers may have wanted to respect employees' privacy rights.

However, over time, there has been a shift in attitudes towards pay transparency. Advocates argue that transparency can help address pay inequities, promote fairness, and improve employee satisfaction and engagement. Increased transparency can enable employees to understand how their compensation compares to others in similar roles and identify potential disparities. It can also encourage organizations to have more consistent and fair compensation practices.

TLDR: some companies and countries have started implementing policies and regulations that promote pay transparency to create a more equitable and open work environment.

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(Head)Space

I’m grateful for this.

Our brains are complex structures, constantly processing experiences, emotions, and interactions. As the day ends, and the external stimuli quiet down, the mind's lens refocuses inward. It sifts through the chaos and the clutter of the day, and invariably, it's the wholesome, intimate moments that stand out in stark relief.

These aren't necessarily romantic moments. They could be moments of understanding, of shared laughter, of giving and receiving support, or simply a shared silence. The meaningful engagement we have with our loved ones offers us a sense of belonging and security that's hardwired into our human psyche.

When the day winds down, and I am left with my thoughts, I find myself invariably gravitating towards those shared experiences with her. It's not about romance or passion, rather it's about the deep-seated psychological need to connect, to relate, to feel seen and understood.

It's the comfortable silence we share while driving back home after a long day, the shared look of amusement over a joke only the two of us understand, the support we provide each other when one of us is dealing with a tough day. It's in these simple, mundane moments that our bonds strengthen, providing a nourishing environment for our emotional and psychological wellbeing.

At the end of the day, the gratitude that wells up within me is for these moments. It's a recognition of the crucial role these shared experiences play in our mental health and overall happiness. These are the moments that make the challenges of the day worthwhile, the quiet anchors in the bustling sea of daily life. These wholesome moments provide not just joy but also resilience, a buffer against the storms that life sometimes brings.

So, when the day is at its end, it's not the accolades, not the achievements, but these moments of connection that I cherish. It's these moments that I'm truly grateful for because, at its core, our psyche values connection, understanding, and love above all else.

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Company of the Week

Logitech

Logitech International S.A. (LOGI), through its subsidiaries, designs, manufactures, and markets products that connect people to working, creating, gaming, and streaming worldwide. The company offers pointing devices, such as wireless mouse; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combinations; PC webcams; and keyboards for tablets and smartphones, as well as other accessories for mobile devices. It also provides keyboards, mice, headsets, and simulation products, such as gamepads, steering wheels, simulation controllers, console gaming headsets, and streamlabs services; video conferencing products, such as ConferenceCams, which combine enterprise-quality audio and high-definition video to bring video conferencing to businesses of any size; webcams and headsets that turn desktop into collaboration space; and controller for video conferencing room solutions. In addition, the company offers portable wireless Bluetooth and Wi-Fi connected speakers, mobile speakers, PC speakers, PC headsets, microphones, in-ear headphones, and wireless audio wearables. Its channel network includes consumer electronics distributors, retailers, e-tailers, computer and telecommunications stores, value-added resellers, and online merchants. The company sells its products under the Logitech, Logitech G, ASTRO Gaming, Streamlabs, Blue Microphones, and Ultimate Ears brands. Logitech International S.A. was incorporated in 1981 and is headquartered in Lausanne, Switzerland.

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Written by: Vlad Estoup, Keyann Al-Kheder, and Roman Kuittinen-Dhaoui