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A new round of stimulus checks could pump $170 billion into US stocks via retail investors, Deutsche Bank says

Added 02-25-21 10:14:03am EST - “Deutsche Bank found survey respondents planned to put around 37% of any upcoming stimulus checks into stocks.” - Businessinsider.com

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Posted By TheNewsCommenter: From Businessinsider.com: “A new round of stimulus checks could pump $170 billion into US stocks via retail investors, Deutsche Bank says”. Below is an excerpt from the article.

Another round of stimulus checks could pump $170 billion into the US stock market, according to a Deutsche Bank survey that showed amateur investors have been using stimulus money to invest in shares.

The survey of retail investors found that just over half of respondents who had received a stimulus check during the coronavirus crisis had used some of the money to buy stocks.

And respondents said they plan to put close to 40% of any upcoming stimulus money into stocks. That means that, if around $465 billion is given out as part of a $1.9 trillion package as planned, roughly $170bn would find its way into stocks, Deutsche Bank strategist Parag Thatte calculated.

Deutsche said it believes a surge in amateur investing has been "a key factor in driving the equity market rally" since stocks crashed when COVID-19 took hold last spring.

Amateur investors and day traders shook Wall Street at the end of January when they used their newfound power over markets to drive up shares in video-game store GameStop, hitting hedge funds who had bet against the stock.

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