Investing in your next stimulus check can be big money making fast
With a new round of stimulus checks apparently imminentPerhaps you are planning to use your next relief payment on some urgent housekeeping expenses.
Two-thirds of Americans who received a $ 1,200 first-round stimulus check in April 2020 used the money to pay bills, and 25% used it repaying debts; to repay debts, according to the Labor Statistics Office.
However, parking your relief payment in the bank isn’t a smart move if you’re looking to get the most out of your free money.
Why? Because traditional bank accounts pay next to nothing in interest.
If you want your new 2021 Stimulus Check to grow over time, you can do better some (or all) invest of which on the stock exchange.
To demonstrate this point, we decided to work out exactly how much someone would have made if they had invested all of $ 1,200 of their first stimulus check in some of today’s most-visited stocks.
We compared Alpha Vantage’s historical inventory data for April 13, 2020 – the Monday following the end of the first round of aid payments – with data for February 8, 2021, the date this article was written.
Here’s what we found, and obviously we don’t know how these particular stocks will perform in the future.
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What your $ 1,200 investment would be worth today: $ 15,189.87
Total increase: 1,165.82%
Total profit: $ 13,989.87
Thanks to the efforts of armchair investors on Reddit and Twitter, GameStop is now infamous as the stock that broke the market – at least for a week or two.
The American video game retailer had problems for years, and when the pandemic hit, things kept looking dire for GameStop.
But when a subreddit called WallStreetBets urged small traders to start trading with low and commission trading apps such as: Robin Hood To snag GME stock, the price skyrocketed and hedge funds that had bet against the stock came under brief squeeze.
GameStop stock has been a roller coaster ride of ups and downs since the story was first published, and while it’s not nearly as high as it was a few weeks ago, you would have made nearly $ 14,000 in profit on February 8 if you did Your entire first stimulus check would have invested in GME. That’s almost enough to buy a PS5 on the black market.
The story goes on
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What your $ 1,200 investment would be worth today: $ 7,958.40
Total increase: 563.20%
Total profit: $ 6,758.40
Despite the pandemic, 2020 was a banner year for Tesla. Elon Musk’s pioneering electric vehicle company Share shares in August and had the biggest year of production ever.
Despite the factory shutdowns that plagued the auto industry during the first wave, Tesla managed to deliver nearly 500,000 cars in 2020.
In addition, the company broke its previous quarterly sales record by more than 40,000 vehicles, selling 180,570 cars in the fourth quarter alone.
If you had invested your first economic impact payment in Tesla stock, you would now have increased $ 6,758 – that’s more than five and a half $ 1,200 economic checks.
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What your $ 1,200 investment would be worth today: $ 2,423.61
Total increase: 101.97%
Total profit: $ 1,223.61
Tech giant Apple also had a big year in 2020 – it was the first US company to reach a valuation of $ 2 trillion.
What’s even more impressive about this statistic is that all second $ 1 trillion came from Apple between March and August at the height of the pandemic.
Apple also saw a huge surge in stock prices in December, which many analysts have rated as buzzing, suggesting the company has begun work on an electric vehicle that would give Tesla a run for its money.
If you invested your $ 1,200 stimulus check in Apple stock on April 13, 2020, you would have made more than $ 1,200 in profit and effectively doubled the value of your relief payment.
Tada Images / Shutterstock.com
What your $ 1,200 investment would be worth today: $ 1,838.53
Total increase: 53.21%
Total profit: $ 638.53
With most of the country locked for much of 2020, online shopping became the new normal for millions of Americans, and Amazon made huge profits as a result.
The e-commerce juggernaut posted sales of $ 386.06 billion for the full 2020 fiscal year – a 38% increase over 2019.
Amazon was one of two tech companies to post more than $ 100 billion in quarterly revenue in the fourth quarter. (Unsurprisingly the other was Apple.)
If you had invested your first stimulus check in Amazon, you would have gone up $ 638 by now – enough to do quite a bit of online shopping. And it doesn’t matter a single Amazon stock trades for more than $ 1,200: some investing apps let you buy Parts of stocks.
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What your $ 1,200 investment would be worth today: $ 2,066.59
Total increase: 72.22%
Total profit: $ 866.59
After a sharp slowdown in the second quarter due to the pandemic, the parent company behind Google and YouTube ended 2020 strong, posting revenue of $ 56.9 billion in the fourth quarter – an impressive 23% year-over-year growth.
YouTube ads were particularly profitable for Alphabet in the fourth quarter, grossing $ 6.89 billion. This corresponds to an increase of 46% compared to the same period in 2019.
After Alphabet announced its fourth quarter earnings earlier this month, the stock rose more than 7% in a single day to hit a record high of $ 2,106.62 per share.
Investing your first stimulus check in Alphabet could make more than $ 866 in profit.
Walt Disney Co (DIS)
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What your $ 1,200 investment would be worth today: $ 2,202.90
Total increase: 83.57%
Total profit: $ 1,002.90
There is no question that the pandemic has hit several Disney divisions badly. In 2020, cinemas closed, cruise ships docked, theme parks operated at reduced capacity and the film and television industries brought to a standstill.
Fortunately for the House of the Mouse, it still owns massive real estate like Pixar, Star Wars, ESPN, and the Marvel Cinematic Universe – not to mention a streaming service that currently has more than 86 million paid subscribers.
In fact, Disney’s stock had climbed to a new record high by December, so you don’t have to worry about Mickey and Pluto ending up on the streets.
If you’d used your first stimulus check to buy shares in Walt Disney Corp. Now you have an extra giant in your pocket.
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What your $ 1,200 investment would be worth today: $ 3,023.38
Total increase: 151.95%
Total profit: $ 1,823.38
Like many retail chains, Macy’s stock took a nosedive in the wake of the pandemic.
Along with countless other well-known brands, the decline in retail sales caused by COVID forced Macy’s to permanently close a number of its physical locations, with further closings planned for 2021.
However, the company’s decision to streamline its operations and focus on e-commerce and top performing stores appears to have paid off. Share prices have risen significantly since the beginning of the new year.
If you had invested your first relief payment in Macy’s stock back in April, you would have made a profit of $ 1,823.
Carnival Corp (CCL)
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What your $ 1,200 investment would be worth today: $ 2,254.96
Total increase: 87.91%
Total profit: $ 1,054.96
The pandemic couldn’t have been worse for Carnival Cruise Lines – with border closings and travel restrictions having a devastating impact on the bottom line, Carnival reported a net loss of $ 10.2 billion for fiscal 2020. Despite the fact that shares of CCL are currently trading at half of their February 2020 target value. They are still up more than 100% from the low they hit in early April.
And as the COVID vaccine continues to hit the market and Americans near a time when they can safely cruise again, Carnival stocks will continue to rise.
If you had invested your first stimulus check in Carnival Cruise Lines, you would now be traveling along with an additional $ 1,054 in your bank account.
How to start investing today
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While we can’t guarantee that your next stimulus check will be as profitable as the examples above, if you bring a little bit of it to market, you can make some serious coin.
Don’t worry if you don’t have a lot (or no) investing experience – these days you have it mobile apps this makes it easy to start buying and trading stocks within minutes.
Some of them even offer FractionsThis means you can buy shares in any of the above companies for $ 5 or less.
So don’t let your next relief payment fester in your bank account – let it work on Wall Street.