Excerpt from Barron’s quoting DataTrek co-founder Jessica Rabe:
…. “DataTrek co-founder Jessica Rabe notes that Mother’s Day will give investors an idea of how Covid-19 is changing spending and gifting patterns.
Rabe points to an April survey from the National Retail Federation. It’s recent enough to account for stay-at-home orders, but a bit dated given much has changed for the average American in the past five weeks or so, she notes.
“Still, the responses show two things quite clearly,” she wrote. “First, the desire to spend on Mother’s Day gifts is high; that’s a positive sign for the economy since uncertainty can often cause consumers to crawl into their shells. Second, what consumers can’t spend on experiences (taking mom to brunch) they will reallocate to other gifts. There is no net economic demand destruction, just a change in where the money gets spent”….
Read the full article here on Barron’s!