It Doesn't Look or Feel Like a Recession
One unique aspect of the current economic cycle is the post-pandemic mindset toward spending. A behavioral observation, and one that gets far less press than the headlines of political upheaval, bank runs or the price of gasoline is the phenomenon called “retail therapy.” After experiencing loss of loved ones or feeling isolated and alone or having a near-death experience, there is a propensity to spend or enjoy or splurge a bit. You may have also heard it called “revenge vacationing” or “grief shopping.” In the time since Covid-19pandemic, spending on trips and luxury items and other goods has been a coping mechanism, a way to make up for lost time (in lock downs) and a way to take back some control.