Vaughan Spa
Toronto Escorts

Second round of US stimulus checks, second mini rally?

Ceiling Cat

Well-known member
Feb 25, 2009
28,188
1,102
113
There are two sides of the US congress, the senate and the house. The house has passed a bill for a second round of US stimulus checks but the senate has not yet approved it. IMHO - The senate can not refuse to pass a second round of stimulus as the nation is in bad shape, but that is not to say that they will pass the stimulus bill in its present form. I suspect that there will be a second round stimulus with a modified bill.

I feel the house and senate of the US congress will sooner or later approve a second round of stimulus causing a false sense of confidence. The markets will rally, but it will be a temporary bubble. One that an investor can take advantage of.
Stepping back you have to look at the big picture. Even with a second round of stimulus this does not take the world out of recession. Looming is the news of the massive spending to quell the covid-19 epidemic, the cost of the first and possible second round of stimulus. The loss of GDP and the unemployment numbers due to covid-19.

I suspect the governments ( US, Canada and the world ) is delaying the bad news to not shock the economy into depression. Although I think there may be a second mini rally on the horizon. I will take advantage of this stimulus induced rally when it arrives, but with caution.
 

Ceiling Cat

Well-known member
Feb 25, 2009
28,188
1,102
113
The U.S. government is about to issue the second round of stimulus checks. I suspect that this will bost the economy as it did last time but will be no where near as effective nor will it last as long as the first stimulus. With the bad news of job losses, evictions and businesses closing or on the verge of closing up the effects will be brief. I suspect the cracks in the economy will be delayed not much further than the U.S. presidential elections. I will have to see how confident the economy is when the stimulus is delivered, I may for a very short time get back into the market. At the first sign of trouble I am bailing out.

The agreement for the second round of stimulus is due to be finalized next week.
 
  • Like
Reactions: xyconyx
Ashley Madison
Toronto Escorts