While countering the recent reflation fears on stimulus ground, Deutsche Bank says, per Bloomberg, “U.S. stimulus checks could unleash a $170 billion wave of fresh retail inflows to the stock market.”
The report goes a step ahead while saying, “A survey of retail investors showed respondents planned to put 37% of their stimulus cash directly into equities, a team including Parag Thatte wrote in a note Wednesday. With potentially $465 billion of direct stimulus being planned, that adds up to $170 billion, they said.”
It’s worth mentioning that Wall Street regained upside momentum on Wednesday as Fed policymakers back extended easy money policies. Hence, the fiscal and monetary stimulus can provide a double-barrel boost to the US stocks.
However, today’s preliminary reading of the US Q4 GDP becomes the key to watch.
Read: US January Durable Goods and Q4 GDP Preview: Consumers worry but they spend
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