Christmas in July might actually happen this year... Because the markets are about to go into overdrive. And experienced investors can smell the correction from a mile away. Trading volume is going to go through the roof. And retail investors are going to turn out en masse. This is because millions of eligible Americans are coming into money... $1,400 to be exact. A recent survey by Mizuho Securities found that nearly 40% of stimulus check recipients plan to invest a least some of their "found money" in stocks or Bitcoin. Mizuho estimated that 10% of the total stimulus funds - nearly $40 billion - will end up in securities. Additionally - and somewhat surprisingly - the survey found that check recipients would prefer to invest in Bitcoin over stocks. All this is to say that things are going to get wild. So you better buckle up... Day traders are going to have a field day... and they should! This is the perfect setup for predictable market moves and easy gains. But for long-term investors, this is a recipe for stress eating and nail-biting. We need to be prepared for the overheated valuations, inflated price targets and irrational exuberance that inevitably follow a big influx of new money in the markets. |
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