Biden’s big release will “save” US stocks? Goldman Sachs predicts that huge amounts of family money will flood into the stock market
According to the Associated Press (Shanghai, Editor Wu Bin), despite the recent decline in the U.S. stock market, funds continue to enter the stock market. Goldman Sachs expects that follow-up ammunition will continue. Biden’s $1.9 trillion release will give American families a large amount of money. Funds, and these fresh “stimulus funds” are expected to flood the stock market in large quantities.
David Kostin, the chief equity strategist at Goldman Sachs in the United States, said on Monday that households are expected to be the largest source of funds for the stock market this year. The cash check is indispensable, and it also reflects that the US economic growth has exceeded expectations.
In addition to family funds, Goldman Sachs expects that the company is expected to become the second largest source of demand for US stocks this year, reaching $300 billion.
It should be noted that despite the recent bear market sentiment, it is surprising that this has not prevented the inflow of funds from mutual funds and ETFs.
Goldman Sachs research shows that since the beginning of February, the inflow of equity mutual funds and ETFs has totaled US$163 billion, and the inflow of funds in the past five weeks has set a historical record. In comparison, the average weekly inflow of funds into bond funds in February was approximately US$10 billion, a decrease of 50% from January.
In addition to Goldman Sachs, Brian Belski, chief market strategist at BMO Capital Markets, is also optimistic about the market. He believes that the economy is recovering, income is growing, and fundamentals are improving, so U.S. Treasury yields will of course rise, so there is no need to worry too much about it.