As the country gradually moves towards varying degrees of what is now being termed as ‘lock down’, it’s time to start planning for the ‘other side’. Pent up demand, historically significant fiscal stimulus and the fact that this is largely a health crisis with economic impacts, rather than a structural issue with the economy could all mean the return of a growth market across many economic sectors in just a matter of months.
Investors and business should consider their assumptions for the financial landscape post COVID-19 and how markets, society and the economy will react when ‘business as usual’ returns.
While markets will return to some semblance of pre-crisis behaviour and structure, it would be foolish to think things will be exactly the same. The pandemic could have variable impacts on consumer behaviour in the long term, as some may move to a more conservative position, building up cash reserves for the next rainy day, while others may take a ‘now or never’ approach and increase their risk profile and ‘aggression’ when it comes to decision making. However, on balance – these behaviours would already be inherent in many consumers and the overall landscape will remain similar.
Preparing for life on the other side will also involve reconnecting socially, greater immediate desire to travel (perhaps more locally than abroad in the medium term) all of this in addition to any financial or investment based decision making. The important part is making sure you start planning now, be strategic, do your research and make sure you’re ready to take each opportunity that comes your way.