Steve Chiavarone, portfolio manager, equity strategist and vice president at Federated Hermes, was doing the opposite.
"We think 2020 really is a story about not only reopening, but about pent-up demand. Consumers spent on goods in 2020 because they couldn't spend on experiences," Chiavarone said. "In aggregate, U.S. consumers are sitting on $1.5 trillion of excess savings that can fund some of that experiential spending."
"If there's pockets of weakness here because we're in the middle of this third wave and you've got downgrades and maybe some of the names have run ahead of themselves, fine," he said. "We're not buying them for the next month or two. We're buying them because we think 2021 is a road to normalization and then '22 and '23 are a period of time where you're getting back to those kind of pre-pandemic travel levels.
“Pent-up demand” sounds really gross.