The stimulus money isn’t going to be spent, Bank of America says

Bank of America

The stimulus money isn’t going to be spent, Bank of America says

Bank of America DOWN 2.18% AT 36.32

Bank of America’s research investment committee say it won’t, and brings some new data to the table. First, it cited data from the Census Bureau showing that of the households who received a $600 stimulus check in the first half of February, 73% saved or paid down debt. Consumer credit also unexpectedly fell in January.

Bank of America also surveyed more than 3,000 people to ask how they would spend the new stimulus check. Even in the lowest-income category, 53% say they plan to either save, pay off debts or invest.

The House of Representatives is due to vote on the $1.9 trillion stimulus plan already approved by the U.S. Senate, at which point it will head to the White House for President Joe Biden’s signature. The Congressional Budget Office estimates $1.1 trillion will be spent in 2021.

U.S. consumer price data for February will be the focus of a market suddenly obsessed with the prospect of inflation breaking out.

On technical fronts Bank of America RSI stood at 62.55 and currently stock is trading above all Moving Averages. So, BUY position can be taken with following target and stoploss.

TRADE SIGNAL -: Bank of America – BUY: 36.32, TARGET: 36.72, STOP LOSS: 35.95

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