THE MIDDLE CLASS SQUEEZE
Consumers trading down when and where possible or looking to stretch the disposable dollars they do have.
The Middle-Class Squeeze was born out of the economic backdrop in the United States and much of Europe since the 2008 financial crisis, which is looking more and more like the new normal. Lower levels of employment, increased savings rates, lack of available credit, and weak income growth have led to consumers saving where they can, seeking more value for each dollar that is actually spent.
Components of the Middle Class Squeeze
Discount & Warehouse Retailers
Stores where shoppers flock to save on clothes, food and other household items where they can gain the greastest value for each dollar they spend
Private Labels and Discount Brands
Consumer trading down to private label, discount and store brands when buying food, fashion and other household items, while eschewing the higher end, "branded" versions of the same products.
Eating at Home
Consumers looking to save money by eating at home over dining out at restaurants and thus increasing trips to grocery stores and frequenting home food delivery services.
Sub Prime Financial Services and Pawn Shops
Financial services firm the specialize in providing loans and services to customers with poor credit.
What is Thematic Investing
Thematic investing looks to identify pain points by looking at the intersection of shifting economics, demographics, psychographics and technologies, mixed in with regulatory mandates and other forces. Such pain points result in a pronounced secular market shift that shapes and impacts behavior, forcing companies to make fundamental changes to their businesses to succeed. Read More >>
What We Do at Tematica
Tematica Research provides equity research, economic insights, and investment ideas based upon its proprietary thematic perspective of the world and financial markets. The thematic discipline utilized by Tematica across its research and economic commentary, as well as its index and portfolio construction efforts, is the culmination of the more than 20 years Chief Investment Office Chris Versace spent analyzing industries and companies. Read More >>