December 17, 2020

Stimulus Update: How Stock Market Will React

Midas Letter
Midas Letter
Stimulus Update: How Stock Market Will React

Yesterday we highlighted the massive Bazooka the Fed Fired at Markets. A $900 billion injection of cash into the economic system in the form of direct payment cheques, small business protection, unemployment benefits, and vaccine distribution.

U.S. jobless claims jumped back to their highest level in three months and are trending back in a worrying direction. The pandemic is surging in many areas and is compounding the disparity between the economic crisis and the stock market exuberance.

The Fed said they will keep interest rates near zero and keep buying bonds until the U.S. reaches full employment and inflation settles at 2%. However, with the amount of stimulus being injected into the economy, there is no factual data saying these new monetary policy tactics will work.

Watch the full video for a breakdown of how the stimulus package will affect the economy and maybe, more importantly, your investments in the stock market.


Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.