The $1.9 trillion American Rescue Plan passed last nightThe highlights of the plan includes:
* $1,400 payments for adults making less than $75k or couple making less than $150k
* increasing the child tax credit from $2,000 to $3,000 and $3,600 for kids under age 6
* extending UIC payments from March 14th to August 29th
* housing rental assistance extended by $45 billion beyond the $25 billion from December
* $50 billion for covid testing and $20 billion for covid distribution
* minimum wage change to $15 per hour from existing $7.25 per hour to be completed by 2025 which I suspect will never pass in the form it is written or perhaps not at all
What does the stimulus package mean?
The money is going to get spent quickly with either purchases or paying down personal debt.
Bond yields jumped last week on the fears that inflation is going to kick in with the stimulus bill. When Trump was the President, any stimulus action was met with an upward burst in the market. Jim Cramer talked on Friday about how a little inflation now and then isn't a bad thing. The market obviously disagreed.
Or maybe Friday was a proverbial "tree shaking" in anticipation of the next leg up in the market. The huge crosses in the last minutes of trading across the board certainly smells like smart money triggering limit orders ahead of the passage of the stimulus bill.
Spring is in the air in Southern Ontario today. So is Covid, as they announced a new round of lockdowns last night for Simco/Muskoka.
The only thing that makes sense to me right now is to head outside and hike in the beautiful sunshine. In a few hours, Matthews and McDavid will be playing for bragging rights.