A survey from Deutsche Bank has given an insight into how much cash from U.S. stimulus checks might find its way into the stock market.
Responses in the survey showed that half of 25 to 34-year-olds plan to spend 50% of their stimulus checks on stocks, leading the German investment bank to state that “a large amount of the upcoming U.S. stimulus checks will probably find their way into equities.”
Meanwhile, 18 to 24-year-olds involved in the survey planned to use 40% of any stimulus checks on stocks, and 35 to 54-year-olds surveyed planned to use 37% of their checks on stock market investment. The over-55s surveyed said they’d put only 16% into stocks.
In all, the online survey of 430 retail investors found that respondents plan to put a large chunk (37%) of any forthcoming stimulus directly into stocks, which could represent a sizable inflow into the market of $170 billion, Deutsche Bank estimated.
The report, authored by Deutsche Bank Strategist Jim Reid and Research Associate Raj Bhattacharyya and first published late last month, focused on a growing trend of younger people getting into retail investment.