The Commercial Real Estate Alpha Site

Story via Titan Funds Newsletter – Click here for more information

Throw it in the bag … In the wake of last week’s election, a new report suggests Americans are “doom spending”—making impulse purchases to cope with lingering economic and political anxieties. A survey of Intuit (INTU) customers reveals that 27% of U.S. shoppers are “doom spending,” with significant traction among Gen Z and millennials, with 37% and 39% of each group using spending to counter feelings of insecurity.  This behavioral phenomenon first became common during the pandemic, explains Bankrate analyst Ted Rossman, as financial concerns and bleak outlooks led young adults to find comfort in spending. Concerns over rising living costs and inflation top the list of reasons behind this spending, with 55% of participants listing cost of living, and 43% citing inflation fears.   Psychology Today sheds light on “doom spending” as a reaction to stress and fear, explaining how these emotions can trigger impulsive financial decisions. Marketers often leverage this by appealing to emotional triggers, encouraging purchases as a form of coping. However, this spending habit can lead to long-term debt and mental health strain.

Later this week, U.S. retail sales data will be released, providing a look at how these trends may shape the economy post-election.