Randall Forsyth on stimulus checks going into the stock market

While institutions reshuffle portfolios, it will be interesting to see what individuals do with their $1,400 stimulus payments.  Some $242 billion was deposited into Americans’ bank accounts on Wednesday, the biggest “helicopter drop” to date, write Jefferies economists in a research note.  At the same time, Bank of America strategists point out, a “staggering” record $68.3 billion flowed into equity funds in the past week.  It seems that at least some of the stimulus may be going for speculation, rather than spending. 

~ Randall Forsyth, "Bond Vigilantes' Return Won't Cause Another Black Monday," Barron's, March 20, 2021