Understanding the portfolio rebalancing channel

The reason why an expansionary monetary policy , with rapid money supply growth leads to a rise in prices of financial and real estate assets is the presence of the portfolio rebalancing channel: the money created is used to buy other assets (equities, bonds, real estate, etc.). However, particularly when monetary policy is of the "helicopter money" type, some observers from time to time question whether there is a portfolio rebalancing channel since helicopter money can be consumed. So it needs to be explained: Let us look at the current situation: governments finance government transfer payments (financing of short-time working, aid to companies, etc.) by issuing bonds, but these bonds are immediately bought by the central bank in exchange for money creation. Everything happens as if there was helicopter money: the central bank gives money to people on short-time work and to companies; Let us therefore start with this scenario: the central bank gives money to households to boost their spending capacity; if households save this money without spending it, there are clearly additional savings initially invested in money; if households consume this money, there is an increase in production, and an increase in overall savings (by households and companies) initially invested in money; So whatever households’ spending behaviour for the money received via helicopter money, there is therefore initially an increase in the private sector’s financial wealth invested entirely in money. It is here that the portfolio rebalancing mechanism appears: the private sector initially has an excessive share of money in its portfolio; it therefore uses this money to buy other financial or real estate assets; at equilibrium, this does not change the quantity of money, but it rebalances the structure of portfolios via the rise in asset prices.