A Wells Fargo strategist says bigger US tax refunds could revive retail risk-taking by late March, potentially sending fresh cash into Bitcoin and momentum stocks.
US tax filers may see larger refunds in 2026 compared to previous years, a development one Wall Street strategist says may boost risk appetite for digital assets and tech stocks preferred among retail investors.
In a note cited by CNBC, Wells Fargo analyst Ohsung Kwon said the coming refund wave could help bring back the so-called “YOLO” trade, with as much as $150 billion potentially flowing into equities and Bitcoin (BTC) by the end of March. Kwon said the extra cash could be most visible among higher-income consumers.
“Speculation picks up with bigger savings…we expect YOLO to return,” wrote Wells Fargo analyst Ohsung Kwon in a Sunday note seen by news outlet CNBC. “Additional savings from tax returns, especially for the high-income consumer will flow back into equities, in our view,” he added.
