NEW YORK–How much cash from the latest round of stimulus payments will find its way into the stock market?
According to an online survey by Deutsche Bank of 430 investors who use online broker platforms, half of respondents between 25 and 34 years old plan to spend 50% of their stimulus payments on stocks. But that figure comes with an asterisk.
“A large amount of the upcoming U.S. stimulus checks will probably find their way into equities,” Deutsche Bank stated, before also acknowledging elsewhere in its report that, unlike the respondents the bank surveyed, most American recipients of stimulus checks do not have trading accounts.
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 equity market investment, according to the Deutsche Bank survey. The over-55s surveyed said they’d put only 16% into stocks.
Up to $170 Billion
The online survey, led by Deutsche strategist Parag Thatte and published late last month, found 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.
The overall sample had nearly equal representation of those under 34 (41%) and 34-54 (37%) and a somewhat smaller share of those over 55 years of age, Deutsche Bank reported. In terms of income distribution, the biggest group was in the $50,000 to $100,000 range (34%), which aligns with the U.S. median income of around $69,000. Most respondents were either employed full time (59%) or retired (12%).
Other Findings
Other findings in the survey include:
- A vast majority (72%) of the respondents reported getting a stimulus check and more than half (53%) said they invested some of the stimulus money in the stock market. Younger people were much more likely to have invested in stocks using the payments, the research said.
- Going forward however, survey respondents plan to put a large chunk (37%) of any forthcoming stimulus checks directly into equities, which could represent a sizable inflow,” the bank said.
- The survey found that more than half of all respondents raised their investments in stocks over the past year, with just under half (45%) investing for the very first time.