10 Features of the post-Virus Investment Landscape — Behind The Balance Sheet

10 Features of the post-Virus Investment Landscape — Behind The Balance Sheet







The solution for Governments must be to engineer higher growth – lets hope they can achieve this, as the alternatives are unpalatable.



My takeaway is that there may be two sorts of consumers immediately post lockdown. Those wealthy employees who have seen no impact on their earnings may well have pent-up demand to spend, in spite of the hit to their savings. They may go out and buy big-ticket items, and trade up in their restaurant choice – they cannot eat the lost meals out, but they can upgrade. My guess is that these will be in the minority, and will be outweighed by the self-employed, the furloughed and the unemployed, all of whom will need to reduce their spending. Even if luxury is partly immune (and I wonder), large swathes of the lower end of the income distribution and the middle class will be, and will feel, much poorer.



Consumers will buy fewer and cheaper big-ticket items.