I found this interesting article on how the pandemic has changed our money psychology, you can read it HERE.
However, I also wanted to share some other observations, based on what I witness with clients and in my wider network.
Normally a share market decline triggers ‘fear in people, and they want to stay away from the stock market for a while. This time around, most people saw it as a buying opportunity. Young and old, experienced and inexperienced, everyone wanted a piece of the action and jumped in.
Online brokers were swamped with applications and couldn’t keep up with the demand. I believe a lot of this ‘new money’ has flown into ETFs, with ethical/sustainable ETFs seeing a fair share of inflows.
Secondly, many people are spending more money on themselves and their health. All of our clients, from dentists, to physicians and surgeons, have never been so busy.
Thirdly, house prices have been going through the roof and many of our clients have been locked out due to massive price increases, or have simply given up looking for the time being.
This pandemic has certainly created some interesting changes in the financial landscape and it remains to be seen how the share market will perform from hereon in.