James Smith
Most young Americans intend to spend up to half of the upcoming stimulus payments from the government on stock investments, Deutcshe Bank has found, its survey results reported by CNBC.
Half of 25-34 year olds plan to spend 50% of their payouts in stocks, 18-24 year olds plan to spend 40% of their payouts and those aged 35-54 year olds plan to spend 37% of the amounts received. The lowest proportion was among people over 55: they are ready to invest only 16% of the money from the government. Under the current plan, Americans will be paid $1,400 per taxpayer.
Overall, and on average, survey participants are willing to invest up to 37% of the upcoming payout in stocks, Deutsche Bank said. Given that about $405bn will be allocated to stimulate consumption, according to US President Joe Biden's plan, the stock market could end up with about $150bn. So government support could lead to a significant inflow of money into the stock market, the bank warned. At the same time, it adds that not all recipients of the payments have trading accounts to begin trading.
New individual investors who entered the stock market during the pandemic are seen as the main driver of the markets rally in 2020, according to CNBC. More than half of those surveyed by Deutsche Bank have increased their equity investments over the past year. Less than half (45%) invested for the first time.
source: cnbc.com
Half of 25-34 year olds plan to spend 50% of their payouts in stocks, 18-24 year olds plan to spend 40% of their payouts and those aged 35-54 year olds plan to spend 37% of the amounts received. The lowest proportion was among people over 55: they are ready to invest only 16% of the money from the government. Under the current plan, Americans will be paid $1,400 per taxpayer.
Overall, and on average, survey participants are willing to invest up to 37% of the upcoming payout in stocks, Deutsche Bank said. Given that about $405bn will be allocated to stimulate consumption, according to US President Joe Biden's plan, the stock market could end up with about $150bn. So government support could lead to a significant inflow of money into the stock market, the bank warned. At the same time, it adds that not all recipients of the payments have trading accounts to begin trading.
New individual investors who entered the stock market during the pandemic are seen as the main driver of the markets rally in 2020, according to CNBC. More than half of those surveyed by Deutsche Bank have increased their equity investments over the past year. Less than half (45%) invested for the first time.
source: cnbc.com