Ivy Investments Forum
We recently gathered a number of thought-provoking experts who shared their latest views on an array of critical issues impacting today’s investing landscape. Watch the session replays to get our panelists’ insights.
Spring stimulus is wearing off at a time when localities are considering additional lockdowns. Will another stimulus package arrive sooner than later?
U.S. personal income received a nice boost this spring, thanks to a massive stimulus package. Consumers actually had more spending power in post-lockdown April, than they had in February. One-time stimulus checks and federal unemployment benefits helped lift April personal income 10.2% over February’s level. Ex-stimulus, personal income fell 9.1% over the same period. We think it is most likely we get another round of stimulus by Christmas, probably in the neighborhood of $1 trillion. If not, it will be at the top of President-elect Biden’s agenda for February. The economic recovery is facing a significant headwind with current COVID-19 trends, so the sooner the better.
Source: BEA, Haver, Ivy Investments. Dates shown are January 2018 through September 2020. The chart shows annual personal income reflecting month-to-month percent changes. This chart is being provided as a general source of information for education purposes only, and is not intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy.