Much of the $1.9 trillion American Rescue Plan just passed in Washington will come in the form of stimulus checks to millions of Americans.
The pandemic has left many food insecure, with long lines at food distribution centers a normal site. It is easy to imagine how that group will use their latest stimulus checks.
Others, however, will spend that money elsewhere.
Wall Street, like it did after prior stimulus checks were issued, will in many ways come out as one of the biggest beneficiaries of the massive pandemic relief act now in effect.
That’s according to a recent survey by Deutsche Bank, which indicates many people, especially younger stimulus check recipients, plan to spend a sizeable chunk of it on stocks.
The survey of 430 investors who use online platforms found half of those between 25 and 34 years old who responded plan to spend 50% of their stimulus on stocks.
Even younger investors, those between 18 and 24 years old, said they plan to use 40% of any stimulus check on stocks.
The percentage also goes down with older retail investors.
Those between 35 and 54 years of age planned to spend 37% of their stimulus checks on market investments.
The over 55 group only expects to use about 16% of their direct payments on stocks.
This is a continuation of the trend seen with the first wave of stimulus checks, according to Deutsche, where more than half of the respondents say they invested at least some of the money into the stock market.
New retail investors are believed to have been one of the key groups driving the stock market to new highs over the past year since the pandemic struck.
The survey found just under half of those surveyed just began investing for the first time.