Our continuing research into the state of the real estate market suggests the Covid-19 virus event will likely put extreme pressure on many sectors within the US and global markets. This, Part III of a multi-part research article, will highlight many of the key economic data points that will soon be released and how these numbers may shock the markets. Additionally, as consumers and businesses prepare for an extended shutdown, it is important to understand the psychological process that takes place in the minds of people. PART I, PART II
Initially, people naturally hope for a quick and reasonable solution. As the process continues where an extended shutdown of the US economy persists, consumers and business managers change their expectations from optimism for a quick resumption of economic activity to “how do we survive this extended closure event”. This is when traders and investors really need to pay attention to what is happening in their local and national economies. One of the most important things to consider throughout an event like this is to watch how your local economy is operating and what is happening with local consumers. This will help you understand what is happening elsewhere.
Demand for certain items will continue almost as normal. We call this the Personal Consumer Essentials. These items are typically things like toilet paper, toothpaste, over the counter medications, underwear, food, and water. These are the types of purchases that must continue for average people to survive this type of event. Luxury items, vacations, extras, and other purchases may suffer throughout this process.
The first 30 days will likely be a transition period for many consumers. Remember, this is still the “hope” phase where Continue reading "Concerned About The Real Estate Market?"