What does the $900B stimulus package mean for investors?

The second stimulus package is now here. It was previously suposed to be around $2T but there was no agreement. Now there has been an agreement and the $900B stimulus has been approved.

What next for investors & the markets?

DXY: this is the dollar index that measures the dollar strength over other currencies. The higher it is the stronger the dollar. When more currency is injected into the market what it can buy decreases. A classic case of lots of money chasing few goods. Because there is too much money supply the price of goods will rise until it is equilibrium with the money supply. If you are a forex trader look at the EU, GU, XU, AU, UC to rise and currencies like USDCAD, USDJPY, USDCHF to go up.

STOCKS: Stocks will also likely go up as more money will pour into the stock market. As a long term investor I avoid the market when it is rallying. The best way to detach yourself from the buslte is to set a direct debit that invests and dollar averages your investment. That means when stocks are expensive you will buy less and when they are cheap you will buy more. It is good to have stocks that you watch. Personally I set pice triggers which alert me if the price has reached levels where the margin of safety is perfect. That means even if a stock is a performer you must act bearing in mind that you could be wrong.

XAUUSD (GOLD): I trade gold and gold will have an orgasm on the news of the stimulus although it is not as much as was anticipated this will still be good for gold. Gold reacts positively to the fall in the DXY. More money more inflation and the less attractive the yields on the treasury bills (TBs: investments with the lowest risk) and the more the money will be poured into the yellow metal.

Spend your stimulus check wisely and happy investing!