the Pop star’s announcement is yet another source of volatility in the capital markets for 2025.
In a decade already defined by wide-ranging macroeconomic shocks, IR teams may be forgiven for ignoring the news that pop princess Taylor Swift has announced her engagement to Kansas City Chiefs tight end Travis Kelce.
After all, this sort of thing usually doesn’t have much more impact than the celebrity sections of news sites and the social media ecosystem.
However, this is Taylor Swift we’re talking about: arch-capitalist, savvy marketeer and industry-defining brand, whose net worth is estimated to be $1.6 bn (that’s enough to make her a small-cap company, in market terms). So naturally, when she makes such a public proclamation, it’s going to have a knock-on effect on the markets.
First of all, the ring, a ‘cushion cut’ diamond giant. That sent shares in Signet Jewelers, one of the few traded jewelry companies on major exchanges, up 3 percent on Tuesday and 6 percent on Wednesday.
Ralph Lauren, whose clothes both halves of the power couple seemed to wear in the engagement pictures, rose 0.5 percent on Wednesday after gaining 2 percent a day earlier. Jefferies analyst Ashley Helgans said Swift’s apparent preference for the brand is a positive for the stock.
American Eagle shares jumped more than 8 percent on Wednesday after the retailer announced a collaboration with Kelce’s sportswear brand Tru Kolors, which will feature the sportsman prominently. That adds to gains made on the back of its controversial ad campaign with actor Sydney Sweeney.
It’s nothing new for Swift, whose impact on economies has been coined ‘Swiftonomics’, with her recent Eras Tour pouring cash into local businesses. The US leg of the tour was estimated to pump $10 bn into the economy, with the ‘Taylor Swift Effect’ name-checked in the Federal Reserve Bank of Philadelphia’s annual report as a growth factor for local economies in cities she visited.
For IR teams, it’s another source of volatility in a year – and a decade – that has not been short of aggravating factors. But how is it best to respond to such external factors?
When we speak to award-winning IROs, the answer is always consistency. Being available to your investors is always a good guiding principle, too.
Computershare Georgeson’s Ann Bowering recently advised that such events are a good opportunity to connect with investors, who ‘seek confidence, clarity, and strategic vision, making communication and engagement crucial yet challenging’.
Back in 2023, speaking about the impact of the outbreak of the war between Ukraine and Russia, Magda Palczynska, head of IR at Polish bank UniCredit, said that constantly reviewing disclosures and keeping in touch with your investment community were the key parts to her success.
‘I think just stay close to your stakeholders, whether equity, ESG [or] fixed income,’ she advised. ‘Try with your disclosures to address as many concerns as you can publicly. And keep repeating the same story to drive consistency.’
That approach clearly worked: Palczynska picked up the award for best IR officer (large cap) at the IR Magazine Awards – Europe 2023. UniCredit was also nominated in two other categories: best overall investor relations (large cap) and best annual report (large cap).
So whether it’s the swing of Donald Trump’s tariffs, the outbreak of conflict or – in better news – the engagement of a pop star to a sporting giant, remember: good IR is all about transparency, consistency and trust.
Have you felt the impact of Taylor Swift’s engagement, directly or otherwise? Let us know, either via LinkedIn, or email us on [email protected].
