A study analyzing over 12 million deaths reveals a correlation between stock market fluctuations and heightened risks of major cardiovascular events and suicide.
Summary: A study by Chinese researchers has found a significant correlation between stock market volatility and an increased risk of major adverse cardiovascular events and suicide. Analyzing over 12 million deaths in China from 2013 to 2019, the study highlights how both daily increases and decreases in stock market returns are linked to heightened mortality risks, especially among individuals aged 65-74, males, and those with lower education levels. The findings underscore the severe psychological stress induced by stock market fluctuations and call for targeted health education and mental support to mitigate these risks.
Key Takeaways:
- The study identified a link between stock market fluctuations and increased risks of major adverse cardiovascular events and suicide, suggesting that financial stress can have severe health implications.
- The heightened risk of mortality from stock market volatility is most pronounced among individuals aged 65-74, males, and those with lower education levels, indicating a need for targeted interventions for these vulnerable groups.
- The findings highlight the importance of health education and mental support during periods of market instability, advocating for government and public awareness campaigns to address the psychosocial impact of stock market volatility on public health.
In a recent study, a team of Chinese researchers has uncovered a startling correlation between stock market volatility and the risk of major adverse cardiovascular events and suicide.
The research, which analyzed over 12 million deaths across China from 2013 to 2019, provides compelling evidence that the psychological stress induced by stock market fluctuations has severe and immediate health implications.
The study, published in Engineering, demonstrates that both increases and decreases in daily stock returns are associated with a heightened risk of mortality from major adverse cardiovascular events and suicide, with the risk being most pronounced among individuals aged 65–74, males, and those with lower education levels.
Leveraging an individual-level time-stratified case-crossover design, the researchers examined the impact of daily stock volatility, including daily returns and intra-daily oscillations for three kinds of stock indices.
Study Findings
The study’s findings indicate that a 1% decrease in daily returns is associated with a 0.74%–1.04% increase in mortality risks of major adverse cardiovascular events and a 1.77% increase in suicide risk. Similarly, a 1% increase in daily returns and intra-daily stock oscillations correspond to risk increments of 0.57%–0.85% and 0.67%–0.77%, respectively.
Stock markets are critical for economic growth, serving as platforms for capital raising and wealth generation. However, the volatility inherent in these markets can lead to significant psychological distress among investors. The study’s findings suggest that the stress from stock market volatility is not just a financial concern but a public health issue that requires immediate attention.
The research highlights the need for targeted health education and mental support, especially during periods of market instability. It also calls for government and public awareness campaigns to mitigate the cardiovascular and mental health risks associated with stock market volatility.
As stock markets continue to be a significant part of the global economy, understanding and addressing the psychosocial impact of stock market volatility is essential. Researchers say the study’s findings provide a foundation for developing effective interventions and support systems to protect the health of investors and the broader population.
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