Friday, July 30

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The Instagram effect is pushing up the prices of’grammable activities like meals out and vacations-creating opportunities for investors

Consumers are rushing out to spend as economies reopen. Roy Rochlin/Getty Images Locked down during the pandemic, Americans and consumers around the world spent big on things like gadgets and gym equipment to make their time at home more bearable.But as economies reopen, people are splurging their cash on vacations, new clothes, and meals out.Paul Donovan, chief economist at UBS Wealth Management, calls it the Instagram effect.He says people want to show off again after months of lockdown, leading them to splurge on things they can post on the'gram. Donovan says the shift in spending patterns is pushing up inflation in some areas but helping bring it down in red-hot sectors like lumber. He expects the change to continue and argues it will be a good thing for markets and in...