We’re one year into Covid-19 and have been seeing the short-term effects on our economy. But what are some long-term effects that are here to stay? Catch up with CFPs, Gabe Lapito and Ryan Gomendi.
How has COVID-19 changed the way we live moving forward?
We’re coming up on one year where COVID-19 has been in our world. We’ve seen some of the short-term effects on economies and our daily life, but what are some of the more mid to long-term affects this has on the economy and life?
This is an interesting thought that we have been spending a lot of time doing research on. Ultimately, we are seeing people walking away from services that aren’t available. Whether its a sporting event they wanted to go to, or trip they wanted to take, or restaurant they wanted to eat at.
New Economic Trends as a Result of the Pandemic
Those options (sporting events, vacations, restaurants) aren’t as available today so what we’re seeing is people taking money they would’ve spent on those services and exchanging it for durable goods. That could mean new boats, camp trailers, kayaks, or things like home improvement. Delivery is another major growth sector. Delivery of durable goods, groceries, and many other things people used to go and physically get.
What this means is that maybe the services sector and transportation, in consumer discretionary parts of the world, will struggle with this major shift. We are seeing durable goods being the focus of where that money is now instead being spent. Obviously there are vaccines out there that are working. If COVID-19 were eradicated, we could see some shifts back to “pre-covid life” such as people going to sporting events and traveling. However, we believe some of these trends and new ways of life are here to stay.