Why Was There More Household Stock Market Participation During the COVID-19 Pandemic?
Financ Res Lett
; 46: 102481, 2022 May.
Article
in English
| MEDLINE | ID: covidwho-1450110
ABSTRACT
Although the nation was experiencing an economic downturn due to the COVID-19 pandemic outbreak, we nonetheless observed an increase in household equity share value relative to both domestic market capitalization and retail investors' trading volume. In this paper, we aim to interpret the reasons underlying this seemingly unexpected phenomenon. We investigate portfolio choices with stocks, bonds, and life annuities under an inverse S-shaped probability distortion function. The results indicate that people invest more heavily in risky assets and buy more annuities when reducing their savings in risk-free accounts, which is indeed consistent with the reality.
Full text:
Available
Collection:
International databases
Database:
MEDLINE
Type of study:
Prognostic study
Language:
English
Journal:
Financ Res Lett
Year:
2022
Document Type:
Article
Affiliation country:
J.frl.2021.102481
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