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What a New Round of Stimulus Means for the Markets This Week

🔥 Biggest Ripper: Cathie Wood’s ARK Invest has a reputation among investors, which is why it’s no surprise that many follow her money. Last week, Wood took out shares of Lending Club, helping shares rise over 35%. Lending Club is a peer-to-peer lender that creates a market that allows normal people to lend to and borrow from a shared pool. Borrowers can pull up to $40,000 in loans. In February, Lending Club bought Radius Bank to help transform the peer-to-peer model for investors. This will supposedly allow investors to make higher interest rates through banking. $LC has risen nearly 60% YTD. 

🗓️Last Week: Despite inflation and rising rates causing investors to flee from tech companies, a new round of stimulus has helped support the broader market. Last week, major indexes such as the S&P 500 and Dow Jones Industrial Average closed at new highs. This ‘rebound’ effect was last observed during the first and second round of stimulus in March and December of 2020. At least in the near-term after the stimulus was passed, stocks rose. 

📈Coming Up: It’s hard to know how long investors will be satiated by stimulus and the government printing money. The housing market, stocks, crypto and other assets are already trading at considerable premiums. In the week ahead, we’ll be keeping our eyes on earnings in stocks which have gained “Ripper status” over the last year such as $NKE , $FDX and $CRWD when they report this week. All of these stocks have more than doubled in the last year. It’s also no coincidence that they’re all American companies, which trade on U.S-based exchanges. These companies might be more reactive to all the new money entering the economy.

Noah Weidner

Noah Weidner is a restless self-starter with a vehement interest in all things that make the world go around: culture, politics, economics and all the people in between. He writes the Bullish Rippers series and covers other interesting trends and happenings at Bullish.

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