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COVID-19 Stimulus is Far from Settled – Here’s the Best Way to Play It

1 | By Michael A. Robinson

COVID-19 stimulus has not only been a tremendous deal, but it’s also still a highly pressing matter.

Congress and the administration responded to the economic impact of the coronavirus pandemic with a $2.2-trillion stimulus last March.

It was the largest stimulus package ever adopted and amounts to roughly 10% of the nation’s economic value. And I expect that it won’t be the last one, either.

Make no mistake. This is a very complicated package totaling more than 800 pages.

It provided $500 billion in loans for large firms and $377 billion for small ones. Families received $300 billion in one-time cash payments.

No doubt, this was a godsend to millions of workers and employers alike.

But there’s just one problem – accounting for all that cash flow is no simple matter, but, as the Deloitte accounting service company points out, that record keeping is necessary to see all the benefits of the program.

If a beneficiary business wants to apply for loan forgiveness, they need to be keeping track of where all of that money they received is going.

And today, I’m going to reveal a tech leader that can do that for companies and households alike and is beating the broad market by 40%…

The COVID Economic Rescue

Now then, the cash flow issue could get even more complex for the economy as another round of stimulus could pass by the end of the year.

If not, then most likely early next year after Joe Biden is sworn in as president.

Last March, Trump’s CARES Act was put in place to relieve the American people of the public health and economic impact of COVID-19.

That’s in addition to Operation Warp Speed, the program to develop an effective COVID-19 vaccine in the shortest possible time and stop the spread of the disease.

If you want to learn more about the moneymaking opportunity from what I call new viable “Super Vaccines,” which extends beyond COVID-19 to future diseases, you can just click here.

But, before any viable vaccine can be released, the government has needed to look out for the economy through the CARES act. Much of this includes bailing out businesses with loans through the Paycheck Protection Program.

According to the U.S. Treasury, “This program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.”

Under the CARES Act, many private individuals got stimulus checks, unemployment, severance, and more. Just look at the $1,200 checks the government pumped out just a few months ago.

All individual tax filers earning up to $75,000 (and joint tax filers earning up to $150,000) claimed $1,200 apiece. The payment was reduced by $5 for each $100 above those thresholds.

However, individual filers who make over $99,000 (and joint filers earning above $198,000) with no children aren’t eligible. For good measure, the government also threw in $500 checks per child for the parents.

Intuitive Bookkeeping

With so many moving pieces, keeping track of cash flow is more intricate than usual… Not to mention, businesses may find it especially hard in these cases to balance their books.

Fortunately, a tech leader is there to help clear up the confusion with a series of cloud-based products.

Enter Intuit Inc. (INTU).

This software firm is known for the ever-popular TurboTax package. The best known-product in its class, TurboTax has more than 43 million users.

But Intuit also counts more than 5.1 small businesses and self-employed

people as clients with products like the accounting package QuickBooks.

The robust platform allows users to track banking, sales, expenses, taxes, reports, and more in a single dashboard.

And its biggest news of 2020 is one main reason I’m such a fan of this stock.

A Merger with Good Karma

In February of this year, Intuit acquired Credit Karma for a cool $7.1 billion in cash and stock.

The company couldn’t have done with any better timing – lockdowns started right after the merger.

Most consumers know Credit Karma for its free credit score monitoring services. Based on the consumers’ financial data, the platform recommends financial solutions such as credit cards and loans.

The company then profits on the backend through commission on any sales. In 2019 alone, the company made nearly $1 billion in unaudited revenue (20% up since 2018).

Not only was it a smart move for Intuit, but it’s a promising one!

The company plans to use Credit Karma’s assets to create a digitized finance assistant for consumers. Imagine accessing all of your personal financial information – like your credit history and income – in one single hub.

Naturally, Intuit will also educate users about other financial products.

Translation: That’s more backend streams of revenue for Intuit.

And with increased revenue, the company also plans to create more jobs for the economy.

I call that good karma for the company and you…

A Steady Road to Growth

In a time when business and personal finances can look like a cluster-you-know-what, Intuit has positioned itself for long-term profits…

Its stock has beat the market by more than 40% since the rebound started on March 23.

And there’s plenty of upside ahead!

In just the June quarter, the company increased its earnings by 211%.

Take merely 10% of that as an annual win and we could get a double in less than 3.5 years.

For as much calamity as this pandemic has created… It sure has a way of shining a spotlight on great long-term tech investments!

Cheers and good investing,

Michael A. Robinson

One Response to COVID-19 Stimulus is Far from Settled – Here’s the Best Way to Play It

  1. Doug B says:

    Thanks – very interesting. This might not be glamorous however it is one of the most basic parts of business – keeping score. This is a high value suggestion

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