One question we at DLAK have considered for some time: How did COVID reset consumer spending behavior? Before 2020, few of us thought twice about meeting friends at a favorite restaurant or catching a show on a Thursday night. Then came the pandemic. Businesses adapted quickly—takeout replaced dining in—but the experience itself was lost. 

In the years since, we believe many consumers have re-evaluated what really matters. They're now focusing less on “things” and more on enjoyment and fulfillment. Time and money are being redirected toward experiences over possessions—and the data backs it up.

What the Numbers Say

We reviewed detailed consumer spending data from the Bureau of Economic Analysis (BEA) to understand how habits have shifted before and after COVID.

(Source: BEA)

Unsurprisingly, travel saw one of the most dramatic rebounds post-pandemic. As soon as restrictions lifted, people were ready to get out of the house. Nearly every experience-based category—except food—saw a dip during the pandemic, but that trend quickly reversed.

Meanwhile, during COVID, discretionary goods spending actually rose in most categories (except phones), as people redirected their budgets toward recreational items. But as we’ve transitioned out of that era, we’re now seeing a decline in spending on physical items, particularly in categories like recreational and sport vehicles—ATVs, UTVs, dirt bikes, and so on.

(Source: BEA)

Today, consumer dollars are flowing toward travel and experiences in a major way. According to Mastercard, global tourist spending on experiences like dining, tours, and activities was up 65% over 2019 levels, while shopping for goods rose just 12%.

In the U.S., leisure travel spending reached over $1.3 trillion last year, with another $215 billion spent on international travel—17% more than pre-pandemic. And it’s not slowing down: surveys show nearly a quarter of Americans still plan to spend more on travel this year than they did last.

What’s notable is that this trend crosses generational lines. Baby Boomers are spending $6,000+ on trips, while Millennials and Gen Z are pouring money into cultural travel, concerts, wellness retreats, and once-in-a-lifetime experiences. “Funflation” is a real thing: people are shelling out for events like Taylor Swift concerts or immersive attractions like The Sphere in Las Vegas—and they’re often willing to take on some debt to make it happen.

What This Means for Investors

In environments like today—where we expect energy prices to remain muted and predicting for no imminent recession—consumer discretionary stocks have historically outperformed. At DLAK, we’re leaning into that opportunity.

But we're doing it strategically: aiming for the best of both worlds by focusing on discretionary names tied to experience-based spending. That means exposure to the very sectors consumers are prioritizing—travel, leisure, entertainment, and cultural experiences.

Looking Ahead: Focusing on What Matters

As consumer priorities shift from possessions to experiences, the post-COVID spending landscape offers both challenges and opportunities. The strong appetite for travel, entertainment, and cultural engagement is reshaping where people choose to allocate their time and money.

For those navigating this evolving trend, it’s essential to focus on sectors that capture the essence of today’s experience-driven economy. At DLAK, we remain committed to helping you navigate these changes thoughtfully—balancing growth potential with long-term resilience as consumer behaviors continue to evolve.

As crypto headlines flash hot and cold, one part of the digital asset ecosystem has quietly gained meaningful traction: stablecoins—digital tokens pegged to traditional currencies like the U.S. dollar or baskets of currencies. Unlike Bitcoin and other volatile cryptocurrencies, stablecoins are designed as tools for efficiency and security, not speculation.

We’ve long been skeptical of Bitcoin’s long-term viability as a store of value or medium of exchange. But stablecoins have always offered something different— practical benefits like avoiding currency devaluation, reducing cross-border costs, and, when used carefully, preserving financial autonomy. We saw early on how they could reshape the financial system, especially in countries facing monetary instability.

Fast, Cheap and (Potentially) Private Transactions

Stablecoins offer a seamless way to move money across borders. Traditional international wire transfers can take up to five business days with fees as high as 6.5%, depending on the countries. But stablecoin transfers can happen almost instantly for just pennies—especially when sent directly between wallets.

There’s also a crucial privacy angle. For individuals worried about government overreach—not corporations, but governments themselves—stablecoins held in self-custody wallets (off centralized exchanges like Coinbase or Robinhood) can provide an extra layer of protection. This isn’t about evading taxes; it’s about maintaining control over personal finances during uncertain times.

The Genius Act Ushers in a New Era

In June 2025, the U.S. Senate passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), the country’s first major regulatory framework for stablecoins. It mandates 100% reserve backing, third-party audits, and licensing pathways for banks and fintech firms. (Source: Congress.gov S.394)

According to the Senate Banking Committee, the goal is to “enhance dollar competitiveness while protecting consumers in the digital economy.” Translation: stablecoins are here to stay — but now, under tighter regulation, and not all stablecoins will meet the new standards.

A Growing Appetite for U.S. Treasuries

As stablecoins like USDT and USDC become more popular, especially in nations grappling with high inflation and capital controls, they are reshaping global demand for U.S. government debt. These digital dollars are typically backed 1:1 by highly liquid, low-risk assets — with U.S. Treasury bills as the primary reserve asset. (Source: Reuters)

As of mid-2025, Tether and Circle hold about $120–200 billion in Treasuries, or roughly 2% of the entire T-bill market. Nearly 80% of stablecoin reserves are now parked in short-term government debt. Analysts project that a stablecoin market reaching $1–2 trillion could drive $1–1.6 trillion in additional T-bill demand in coming years. (Source: Yahoo! Finance)

In effect, millions of global users seeking a safe, dollar-based store of value are indirectly reinforcing U.S. debt markets — strengthening the dollar’s global role through decentralized, market-driven adoption. Use Case in Focus: Venezuela Take Venezuela, where hyperinflation has ravaged household savings in recent years: • 65,000% inflation in 2018 • 9,500% in 2019 • 2,960% in 2020 (Source: Statista) For someone like Alejandro, a Caracas business owner, these weren’t just statistics— they meant watching his savings lose value overnight. One month he could afford a car; the next, he could barely buy groceries. Fear of asset seizures and tighter capital controls only deepened the urgency to protect his wealth. Holding value in a dollar backed stablecoin could have preserved nearly 100% of purchasing power during these years of hyperinflation. And this isn’t hypothetical. Today, millions of Venezuelans and Argentinians use USD-backed stablecoins like USDT and USDC in everyday transactions to help shield themselves from currency collapse and maintain control of their finances. (Source: Bitso.com) Tools for the Real World, Not Just Hype We believe Stablecoins aren’t speculative gambles—they’re functional, flexible tools now operating in a clearer, more secure legal environment. While they won’t shield you from inflation entirely, they can tie your wealth to more stable monetary systems than fragile local currencies. As global demand grows, we may see stablecoins pegged to other national currencies or diversified baskets, offering broader protection from relying on a single economy. At DLAK, our commitment remains the same: • Stay ahead of the curve • Focus on long-term strategy over short-term hype That said, the market is still in its early stages, but understanding Stablecoins now puts you ahead of the curve as global money continues to evolve. A Final Word of Caution: Crypto assets carry theft risk. In 2024, $2.2 billion was stolen; in 2025, $2.1 billion has already been lost, with projections topping $4 billion by year’s end. We hope you found this information educational; and we are sure many people still today will choose to steer clear from this segment of the marketplace entirely.

*Digital currencies are speculative, highly volatile, and not backed by any central bank or government. Cryptocurrencies are likely to evolve over 
time, including potential regulation. There are unique risks associated with cryptocurrencies relating to the technology that is central to its 
existence.*

THE LEADOFF SPOT: Stablecoins: Real-World Utility in the Crypto Universe

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