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One estimate puts it at $170 billion extra flowing into retail investing.[1] Also, it may be reasonable to use the savings rate as a rough proxy. That rate was

by bumby 4y ago

One estimate puts it at $170 billion extra flowing into retail investing.[1] Also, it may be reasonable to use the savings rate as a rough proxy. That rate was higher than it has been for decades when the stimulus was active and has since dropped. [2] [1] https://www.nytimes.com/2021/03/21/business/stimulus-check-stock-market.html https://www.nytimes.com/2021/03/21/business/stimulus-check-s... [2] https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/PSAVERT

eek2121 4y ago
I am willing to bet they didn't factor in the whole meme stock craze. Zero of our stimulus went into buying said stocks, however I did make a bucket load from GME and AMC prior. Our stimulus went into further "stimulating" our savings account. The money I spent with Robinhood was entertainment money. It just happened to pay off big. A more conservative estimate places stimulus "meme stock" trading at less than 0.1% of the stimulus.
- bastardoperator 4y ago
  I made a bucket load in 2020 and 2021 and didn't qualify for a stimulus check based on income. How are we defining bucket load?
sershe 4y ago
How much of that was due to inflation? People could just be trying to get rid of cash. I had a bunch of excess cash due to falling behind on D.C.A.-ing, and I accelerated that (which was not a good idea in the short term, but that's what D.C.A.-ing is all about - wish I hadn't fallen behind on it over the years!) and bought a bunch of under-par bonds and utilities for the yield, sold a lot of now-expired SPY puts and stock calls too ;) More trading than I've done in my life, mostly because of inflation, not stimulus.
- bumby 4y ago
  It’s possible, but I don’t think that was a major factor. It wasn’t in the linked article and inflation was much lower during the stimulus. When it was creeping up, initially people thought it was transient. I don’t think most people know what the inflation rate actually is; I asked someone yesterday and they said “close to 50%”.
smsm42 4y ago
I think the fact that people just discovered that government deciding to put the country under house arrest is the thing now and they can be out of the job and not allowed to leave home at any time now - and started to save more is kinda natural behavior in these circumstances.

by bumby 4y ago

eek2121 4y ago

I am willing to bet they didn't factor in the whole meme stock craze. Zero of our stimulus went into buying said stocks, however I did make a bucket load from GME and AMC prior. Our stimulus went into further "stimulating" our savings account. The money I spent with Robinhood was entertainment money. It just happened to pay off big. A more conservative estimate places stimulus "meme stock" trading at less than 0.1% of the stimulus.

bastardoperator 4y ago
I made a bucket load in 2020 and 2021 and didn't qualify for a stimulus check based on income. How are we defining bucket load?

sershe 4y ago

How much of that was due to inflation? People could just be trying to get rid of cash. I had a bunch of excess cash due to falling behind on D.C.A.-ing, and I accelerated that (which was not a good idea in the short term, but that's what D.C.A.-ing is all about - wish I hadn't fallen behind on it over the years!) and bought a bunch of under-par bonds and utilities for the yield, sold a lot of now-expired SPY puts and stock calls too ;) More trading than I've done in my life, mostly because of inflation, not stimulus.

bumby 4y ago
It’s possible, but I don’t think that was a major factor. It wasn’t in the linked article and inflation was much lower during the stimulus. When it was creeping up, initially people thought it was transient. I don’t think most people know what the inflation rate actually is; I asked someone yesterday and they said “close to 50%”.

smsm42 4y ago

I think the fact that people just discovered that government deciding to put the country under house arrest is the thing now and they can be out of the job and not allowed to leave home at any time now - and started to save more is kinda natural behavior in these circumstances.