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Millions of amateur investors in the United States are rubbing their hands with the arrival of the check for $ 1,400 for the budget package designed by the administration of Joe Biden, president of the country, at a time when they are expected to use this money to invest. in the stock market, as they did in the two previous support plans.
In a group of Telegram messaging applications that Business had access to, where about 100,000 of the 10 million members of Wall Street Bets are present, the Reddit forum that became famous for being the scene of the “attack” combined of this group. From millions of investors to companies like GameStop this year, the theme of the day is the arrival of these checks to the accounts.
One of the users of this restricted group, where each member can only access through an invitation, various messages and advice are given on what actions to spend the money from the checks. One of these members confirmed that he and his friends had already received the check for $ 1,400 and would invest it in shares of so-called “meme” stocks, such as GameStop. The money used to buy stocks rose sharply when the check for the latest fiscal stimulus hit Americans’ account. In March of last year, when the first such check was distributed, money invested in stocks through retail platforms was $ 838 million above the average. In December, when the second of three checks fell, that amount grew 381 million compared to the average, according to a Vanda Research note, cited by the Financial Times.
According to that study, around $ 3 billion from Joe Biden’s $ 1.9 trillion program will be used to buy shares in the coming days, so a new race is expected for several companies that this group of investors are targeting. .
In a Deutsche Bank report last month, you can read that two-thirds of investors under the age of 34 intend to use the check to invest in stocks, while the number of people in every 50 years who want to invest falls by below a quarter. . Retail investment now corresponds to about 20% of total orders placed in financial markets around the world, according to UBS, well above the 8% to 10% that were recorded before the pandemic.
The most frequently mentioned companies are, in addition to the video game retailer, the theater distributor AMC, or other “penny stocks” (stocks worth less than $ 10) like Huge, in the pharmaceutical industry. In addition to company stocks, the focus also appears to be on the cryptocurrency market.
Last year alone, an average of nearly 11 billion shares were traded each day, well above the 7 billion orders that were filled in 2019, according to a note by Piper Sandler, showing that this number surpassed those 15. billion in 2021.
Who also seems to have liked the arrival of these checks was Robinhood, an online broker, who sent a notification to each client with the title “The stimuli have landed.”
The American Rescue Plan – the name given to this budget plan – is the greatest stimulus that the country’s economy will receive since the beginning of the pandemic, in which every citizen who has earned less than $ 75,000 in 2019 receives a check of $ 1,400 during these days.
In addition to these checks that will be delivered directly to most Americans (90% of families will enjoy), the ‘covid-19 part’ of this diploma renews an additional $ 300 weekly allowance for the unemployed. The extension of the tax deduction with children is also contemplated, which now amounts to $ 3,600 per child, as well as $ 350 billion in local and state aid.
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