Consumer confidence has been unpredictable in the face of economic uncertainty caused by the pandemic, with a slow decrease in spending and uncertainty over inflation, gas prices, and future plans affecting personal budgets and the overall economy.
The fear of hyperinflation, in addition to increasing risk premiums due to a devastating war in Ukraine, has added to the uncertainty surrounding the normalization of rates and future inflation rates.
The coronavirus is not going to cause an economic recession, but it may act as the needle that pops the bubble. The speaker predicts that in case of a drastic situation there will arise discount memberships and buying clubs.
The markets are forward-looking and people are putting money at stake to invest in future markets, but unless they're placing bets, it's all just cheap talk. The geopolitical risk of Eastern Europe is not inspiring confidence in the markets.
The flexibility of working arrangements may be permanent with employees coming into offices three days a week and staying home for the remainder. However, social activities will return to pre-pandemic levels within a year.
With the current hot job market, it's best to take advantage of it and secure a job before a possible recession. Historically, every time inflation exceeds 4% and unemployment drops below 5%, a recession follows within two years, according to economists.