In previous posts (regarding equities, oil and bitcoin), I proposed that the retail investor is marginal buyer that push price higher. In this post, I suggest evidence that it is the case.
First, from the FRED database, we can see that the saving rate is at a whooping 33%. How can you save a third of your income when unemployment is at a all time high (since 1950) of 14.7%? Well it seems that income was higher as well thanks to unemployment benefit and the help of helicopter money.
![](https://financialnarratives.com/wp-content/uploads/2020/06/image.png)
As the economics theories expect, in time of uncertainty, you can(t force consumption (even more when you are in lockdown mode).
Looking in Google Trends, we can see a spike in stocks investing that stays elevated.
![](https://financialnarratives.com/wp-content/uploads/2020/06/image-1.png)
Robinhood (motto investing for everyone) interest is seeing a spike as well.
![](https://financialnarratives.com/wp-content/uploads/2020/06/image-2.png)
Is that sustainable? I doubt you can inflate personal income forever when GDP is contracting. We will see.
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