Have you gotten your “stimmie” check yet?
All the analysts are expecting these stimulus checks to be pumped right back into the market…
And they’re right.
There are three distinct types of Americans that are going to make that happen…
But one of them is a true gamechanger.
First there will be those who have been displaced or otherwise adversely affected by the pandemic.
These poor guys are just trying to make ends meet.
They’ll purchase food, pay some bills, and address other household necessities.
Next are the consumers and impulse buyers.
The markets, particularly retail brands and ecommerce companies, love these types of spenders.
Retailers are literally “banking” on these big spenders to boost their Q1 and Q2 cash flows.
As soon as these stimmie checks get into their hot little hands, they’re going to run out and buy the latest and greatest “stuff.”
Smart watches, phones, TVs, clothes… You know, stuff.
No judgement calls here.
It’s just the psychology of the sale and human nature.
Some people save and some people spend.
Hell, just last week I commandeered a 20-ton boom lift and drove it around my neighborhood.
It’s safe to say that I’ve made one or two impulse buys in my life.
Finally, there are the investors.
They’ll boost the market by using the funds as investment capital to fund their investment accounts.
And this is where the game changes, my friend.
The first group’s bills and household necessities will be due again next month, and the next month, and so on to infinity.
All the big spenders’ “stuff” is going to get old and boring.
There will be a new must-have gaming console, or a new iDroid 20 on the market by Christmas.
That’s dead money.
But imagine what a savvy investor could do with a 300% return on a $1,400 – $2,000 stock investment.
$1,400 could become $4,200.
$2,000 could become $6,000.
Which group has the winning hand in that deal?
Obviously, not everyone will have the economic freedom to drop their entire check into a trade account.
But a lot more Americans will have that option than are willing to exercise it.
If you do have that luxury, invest wisely.
Buying “stuff” is fun. We get the endorphin rush of something shiny and new.
But impulsive spending is the classic example of instant gratification.
We get what we want RIGHT NOW, but the joy is fleeting.
Delaying that gratification instead and putting your money to work for you with strategic investments can bring you joy that will last a lifetime.
That ROI is priceless.
Having the capital to pay for the things you need, buy the things you want, AND having enough left over to invest and grow is power.
… And the beginning to building real wealth.