Taylor Swift vs. Central Banks: One Swiftie calls ‘BS’

Swiftonomics explained: Callie Cox, chief market strategist at Ritholtz Wealth Management and self described ‘Swiftie’, analyzes the reality behind how Taylor Swift’s concerts are shaping inflation rates and challenging central bank policies.

Cox shared her insights with Yahoo Finance’s Jared Blikre and Sydnee Fried on “Stocks in Translation.” Listen to the full episode here, or wherever you get your podcasts.

This post was written by Jimi Corpuz.

Video Transcript

I do want to get to a taste of Hollywood.

Here it is.

Who else?

Ok.

Here we go.

Because who better to grace the who wore a better playbook than the one and only Taylor Swift.

So we’re going to get to this in Liverpool England Sunday night.

She notched her 1/100 show of the Eras tour.

She is expected to add a billion pounds or more in spending when all is tallied over there.

But all that spending comes at a price inflation and here’s where Wall Street comes into play.

We have TD Ameritrade.

They’re out with a note Friday saying that Taylor’s tour could add 30 basis points or 3/10 of a percent to services inflation in August and about half that in headline inflation.

Again.

That’s in the UK.

So Taylor’s five concert dates in Jolly old England in the middle of August because she’s going back there.

They are expected to boost prices such that it could alter the Bank of England’s plan to cut interest rates.

Says TD says the analyst.

Meanwhile, we know how this story played out in the US Swift got shouts by the Federal Reserve in official press conferences and Business briefs.

Investment Bank.

Nomura estimates that monthly travel inflation rose 2.1% points for us cities in the Era tour.

One more piece of evidence.

Look at the box office because you got her movie Taylor Swift.

The Era tour.

This is based in on her final US concert.

It has already pulled in 250 billion, a million, excuse me, a million dollars.

Um And that’s just an incredible run.

So I gotta ask you considering all of this, which domicile, which country is wearing the Taylor swift inflation?

Uh I guess uh tour hype better.

Wow, that is such a good question in full disclosure.

I’m a swifty.

So I love that you asked me this.

I, so first of all T D’s note about Taylor swift delaying interest rate cuts is a little extreme and I’ll tell you why.

So a lot of the inflation that we’re seeing in the UK and Europe has been goods based.

Um Not to say that there hasn’t been this like services, this persistent inflation going on underneath.

But the big problem that we’ve seen has been, you know, food prices, it’s been gas, which is different than the US.

Story continues

Exactly.

The US has suffered from that.

Of course, I mean, we’ve all paid at the pump, right.

But in the US, the big problem has been services inflation, what you pay for a haircut, what you pay for insurance, what you’re paying for traveling airline tickets, concert tickets, exact all of that and that’s influenced by demand.

Uh Europe has a little bit of that, but their problem has largely been a supply issue.

You know, they were especially exposed to and still are exposed to, you know, the challenges we see in Ukraine, um they’re exposed to, you know, different trade, I call them trade dynamics across the globe.

And, you know, they’re also at a point where their, their economy is sputtering out a little bit.

So for somebody to say that, you know, Taylor Swift’s, you know, few day visit to a European country could influence a central bank.

You know, I’m probably calling BS on that.