TRG | The Bottom Line – 5/20

What does inflation look like? We’ve written extensively about pricing inflation on building products and materials, ranging from steel to cement. What about everyday services like transportation? Picture this: a 3.3-mile trip from the upper East, a slight drizzle boosts ride share and cab demand. An UberX ride cost $100 versus yellow cab at $25, a whopping $75 delta. What changes behavior in today’s market is the whipping the stock market has taken – the S&P 500 has dropped 16% since the end of March and is off 20% from highs. Bottom line, sloppy market movements like this changes behavior, even for the upper echelon. Verdict for the Wall Street exec’s trip: yellow cab.