Face the music, page-270

Some on here may not have seen a recession before, some will have; however I don't think that we can be that categorical. Recessions are actually very different and not universally alike.

The early 80's recession was very much a blue collar recession. The early 90s was very much a middle class recession. The early 2000s was so varied it didn't even exist in many places.

In the 20th century (post the industrial revolution) we had a 2 speed economy and recessions served to highlight this. Heavy industry (manufacturing) and light industry/service economy and recessions wrought havoc on heavy industry more than light - in many instances sounding the death knell for some.

Right now we have a 2 speed economy - off line traditional economy and the online economy. We probably are underestimating the devastation of the off line industry and this will show up in the numbers. The online economy though seems to be not just surviving but thriving.

My hypothesis for the share price volatility is the lack of understanding of Afterpay's exposure and the uncertainty over the online economy and my investment thesis is that Afterpay is very much aligned with the online economy and the online economy is thriving.

Overall economic numbers could be a disaster but Afterpay is not necessarily tethered to the same fate.

KM