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Anonymous
There seem to be some early signs based on what we see in the first week in China?
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HC Tang
12 May 2020
Financial Enthusiast, Budgeting at The Society
Revenge spending yes because being lockdown unable to travel , dine in restaurants and drink bbt.
However , that will be just short term. If economy continues to go bad, unemployment rate continue to rise , no income how to spend ? Only possible for the short term basis.
The ultimate supply and demand theory will always come back in and reflect true economy state.
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That surge in spending might be brief, if we get a second surge in covid-cases lol...
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By surge, I am assuming it means a sudden huge increase in volume and sales.
I don't think so until there appears to be major breakthroughs in the coronavirus situation that is a clear indication that we are moving out of this mess. The lower numbers these days may be upended once the lockdown eases, as people start to move out of their homes. Hence, the effect of the ease is still uncertain.
However, if there appears to be major improvements in the daily cases despite easing of measures plus progress in vaccine creation, then consumers' sentiments will largely improve too!
I think there still may be a surge, though it'll be a short one, following the easing of lockdown measures. However, recovery to pre-virus conditions will take up to 1-2 years IMO.