Tuesday, January 7, 2014

Falling stock prices make people sick… literally

Sometimes, emotions, much more than any physical threat, can cause the body to develop illnesses.  In fact, it is estimated that stress is the greatest threat to developing a heart conditions, high blood pressure, and even some cancers.
So when a new study came out showing that hospital visits for illnesses occur in greater proportion on days after a drop in the stock market, it validates the Japanese belief that emotion has just as much to do with the rise and fall of equities as a company’s fundamentals do.

A one-day drop in equities of around 1.5 percent is followed by about a 0.26 percent increase in hospital admissions on average over the next two days, according to a March 2013 study by Joseph Engelberg and Christopher Parsons, associate professors of finance at the University of California at San Diego. The impact on psychological conditions such as anxiety or panic attacks is even stronger and more immediate, with admissions jumping twice that much in one day.

Read more on this article here...


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