These 3 ETFs Would Benefit from Stimulus Checks
Stimulus checks are widely discussed in social media, political commentary, and the news, and the long-awaited economic assistance could represent a meaningful event for the stock market. The government made direct payments of nearly $270 billion to individuals and families between April and September, which was enough to catalyze stock market participation and improve second-quarter financial results in a handful of specific industries. Having some extra exposure to these industries during a stimulus quarter earnings season is an avenue to consider for outperformance.
Political log jams ahead of the November elections have thus far prevented any agreement on the next round of stimulus checks, but leaders of both parties continue to voice commitment to supporting the American consumer. Moreover, the Federal Reserve has made public comments indicating that economic consequences could be dire without targeted assistance. There are definitely hurdles to overcome, but it would seem that stimulus is in everyone's best interest, so an eventual deal seems likely.
We have data on the use of previous stimulus funds, so reliable projections can be made about future rounds. Direct payments were provided to households at every income level, so the range of uses was correspondingly large. However, previous fiscal stimulus was deployed by Americans to increased savings and investment, debt repayment, and consumption. Key areas of consumption were housing, basic needs, utilities, medical care, and basic goods.
Source Fool.com
