$ 190 billion of incentive money could go directly to the stock market

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President Biden signed the third $ 1.9 trillion incentive package yesterday. Many Americans will receive their $ 1,400 stimulus reviews in the coming weeks, and the U.S. stock market could be a lucrative (but risky) place for them to invest, given the wild movements we’ve seen in stocks meme .

Incentive and stock market surveys

There is no doubt that retailers have been very active since the coronavirus pandemic. If the stimulus check currency finds its way into the stock market, one thing is for sure: The S&P 500 stock index, the Dow Jones Business Average and the Nasdaq Integrated Index could post new highs. The stock market will not worry about inflation or rising bond yields as this new currency is going to give retail traders a fighting spirit.

How much incentive money might be going to the stock markets?

There is speculation that the third round of stimulus studies is going to find its way into the stock market. Banks have already started estimating the amount of that money that could be going towards the stock market. The profitability is that we would see around 9% to 10% of the total incentive money go towards stocks. To put this into perspective, we would see anywhere between $ 150 billion to $ 190 billion of money pumped into the U.S. stock market.

According to a Deutsche Bank survey of more than 400 investors, investors between 25 and 34 could put 50% off their incentive check payments into the stock market, Bloomberg said. The bank predicts that the total amount of money that could go to the stock market is $ 150 billion.

One of Wall Street’s giants, JP Morgan, appears to be predicting that. He believes that social platforms such as the Reddit Wallstreetbets forum and Stockwits may ignite the stock market again in the coming weeks.

Meme Products will see more inspirational inflows

Retail investors are more likely to approach meme stocks with their incentive money, as they are more likely to take a risk for a potentially huge reward.

AMC stock Meme and movie theater operator is moving heavily on the Reddit forum on Wallstreetbets. Shares of AMC rose yesterday more than 9%, mainly due to strong earnings and positive vaccine updates; it seems that retail stock traders could continue to bet heavily on this stock with incentive reviews in hand.

Reddit traders are also paying close attention to Cathie Wood, CEO and CIO of ARK Investment Management LLC

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, ETFs (ARKK & ARKW). RBLX, Roblox Corp, listed their stock yesterday, with an IPO price of $ 45. Cathie Wood, who is now followed by many retail traders, has bought this stock. Since the Roblox IPO, the stock price has been rising, and yesterday, it hit a high of $ 76.

Some of the stocks mentioned on the WallStreetbets are part of the ARK Investment charts. Here is a list of the top 10 moving stocks on Wallstreetbets:

  • GME
  • AMC
  • RBLX
  • PLTR
  • TSLA
  • RKT
  • AAPL
  • IPO
  • AMD
  • NIO

Conclusion

In the last few weeks, concerns about high inflation and rising bond yields have surfaced among traders. But President Joe Biden’s signature on the $ 1.9 trillion stimulus package yesterday means many Americans will soon receive their $ 1,400 incentive studies – pumping up to $ 190 billion to the market.

Retail traders are likely to invest in the U.S. stock market with their new capital, and this could erode all credentials around inflation and bond yields. Therefore, indices may reach their new highs in the coming weeks.

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