According to a survey published in Betterment, a financial advisory company, out of 1500 investors, almost 91% of them received a stimulus check and 46% of them invested at least some if not all of their stimulus check into the stock market. Out of the 46% of people who invested part of their stimulus check, 70% of those individuals invested at least half or less than half of their checks.
Keeping this in mind, almost half of the demographic surveyed invested their stimulus check into the stock market. With multiple checks being distributed, they were initially given to the public to be essential money to help beneficiaries survive during the tragic Covid-19 pandemic. The most recent stimulus package was up to $1,400 per individual as a part of the American Rescue Plan. Comparatively, a survey taken last year at the peak of the Pandemic during the first round of stimulus checks showed that only 9% of people invested that money. This first check ranged in up to $1,200, most recipients saved these funds, used them for bills and to create emergency funds. This proves that the general population is feeling much more confident about their personal funds this year than they did last year during the peak of Covid 19.
The Bloomberg survey states that most beneficiaries used the following breakdown for how they chose which stocks to invest in: 61% was based of financial websites and blogs, 52% was based off of companies that individuals were familiar with and confident in, and 42% was influenced off of social media platforms, Twitter, and Reddit’s accounts such as WallStreetBets. As well as 40% of individuals invested in stocks that came in conversation within family and friends. Lastly 31% of stocks were purchased based of business and television shows.