Stimulus, Round 2!
The White House has signed the second COVID-19 relief bill into law totaling at $900B, this has come days after back-and-forth arguments between parties and much uncertainty. The public opinion is mixed, with many claiming the $600 provided to each American is not nearly enough while others pointing towards the fact that if the bill had not signed, then a partial government shutdown would have begun on Tuesday, and many Americans would be left without anything. Regardless, the markets have so far made positive moves in response to this, with the S&P 500 up 0.6%, and Nasdaq up 0.5%.
The effects of this stimulus bill were far reaching with sections of the bill providing funding for vaccine distribution and schools – a potential nod towards reopening. Moreover, gold and silver futures prices gained after the announcement, likely because Precious metals are used as a hedge against inflation, which tends to come into place when money is infused into the economy.
With the package just being passed the longer-term implications are yet to be seen and we will have to continue to wait patiently and hope for the best.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.