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Higher stock market fluctuations lead to more deaths from heart attacks, strokes, and suicides: Study
A Chinese study found a 1% drop in any important stock index led to a 0.74-1.04% increase in deaths by heart attacks and strokes and a 1.77% rise in suicides.
The more turbulent the stock market gets, the more measurably the number of deaths related to heart attacks, strokes, and even suicide increases, a study by China's Fudan University found out. The study analyzed over 12 million deaths between 2013 and 2019 in China, the world’s second largest stock market, with an especially high proportion of individual investors compared to institutional investors.
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Just a 1% drop in an important Chinese stock index equaled to a 0.74-1.04% increase in deaths by heart attacks and strokes and a 1.77% increase in suicides.
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But its not just when markets fall. Its also applicable when markets suddenly gain, although to a lesser extent.
This phenomenon also isn't completely centered around big crashes or booms, but also during daily fluctuations.
Who's health is the most vulnerable to stock market fluctuations and why?
The most vulnerable individuals included men, people aged 65-74, and individuals with lower education levels.
The researchers attribute the reasons for the death to acute psychological stress caused by unexpected gains or losses in wealth, even if its only on paper, which can lead to changes in blood pressure, heart rate, and inflammation levels, causing cardiovascular issues.
Stock market volatility can also have a profound impact on mental health, often exacerbating feelings of anxiety and depression and pushing people towards suicidal thoughts.
This is all despite the fact that day-to-day market fluctuations don’t necessarily define long-term financial status. The study underscores the importance of developing stress management techniques and seeking support whenever needed to prevent health issues.
What are the limitations of the study?
Not all individuals in the study were necessarily direct stock market participants, the study doesn't take into account other factors outside the stock market, it doesn't account for the financial status of the individuals, and since it was based fully in China, it may or may not find parallels with other countries.
