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Investors Literally "Worried Sick" About Stock Losses

Tyler Durden's picture




 

"It's a very straightforward result," UCSD professors Joseph Engleberg calmly states, hospitalizations rise on days when shares fall, and "people are hospitalized disproportionately for mental conditions." Equity-market losses appeared to induce 3,700 market-related hospitalizations a year in California, which implies visits add roughly $650 million a year to U.S. health-care costs when data from the most-populous state are extrapolated nationally - another additional cost of QE? The findings, Bloomberg reports, show a one-day drop in equities of around 1.5% is followed by about a 0.26% increase in hospital admissions on average over the next two days.

 

Via Bloomberg,

Declining stocks worry people sick, if hospital records are any guide.

 

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.

 

“It’s a very straightforward result,” Engelberg said yesterday at the American Economic Association’s annual meeting in Philadelphia, where he presented the findings. The results were based on almost three decades of daily admission data for California hospitals. Hospitalizations rise on days when shares fall, and “people are hospitalized disproportionately for mental conditions.”

 

Equity-market losses appeared to induce 3,700 market-related hospitalizations a year in California, which implies visits add roughly $650 million a year to U.S. health-care costs when data from the most-populous state are extrapolated nationally, Engelberg and Parsons estimated. They cited Census Bureau data showing an average hospitalization event costs around $21,000.

 

...

 

“People get stressed out and anxious and depressed when the stock market performs poorly,” Engelberg said in an interview after his presentation. “That may be very obvious, but I think this is the first paper to come along and try to take a good step at quantifying how big that is.

 

The effect of a large market drop is twice as strong during periods of low volatility because “extreme returns are more surprising to investors,” Engelberg and Parsons concluded.

 

“Your expectations are set by what you experienced in the recent past,” Engelberg said in the interview. “If it wasn’t very bumpy and you see a big bump down today, that’s more likely to get you depressed or stressed or anxious than if you saw a lot of bumps in the past year.”

 

...

 

When the market tanked, heart attack rates went up,” she said.

 

...

 

“A lot of behavioral finance is about how your mind affects markets and very little talks about the other way around,” Engelberg said in the interview. “We have evidence of causality coming from markets coming back to investor psychology, and that’s been a missing component in terms of empirical findings in a lot of prior research.”

So it would seem that Obamacare is perfectly timed as the bubbles the Fed has blown (and volatility suppression) will end up causing widespread illness...?

 

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Mon, 01/06/2014 - 10:11 | 4304102 Zero Point
Zero Point's picture

No problem. The US has free healthcare now.

Mon, 01/06/2014 - 10:13 | 4304109 TheFourthStooge-ing
TheFourthStooge-ing's picture

...and stocks only go up. Another win for Obamacare.

Mon, 01/06/2014 - 10:11 | 4304115 Zero Point
Zero Point's picture

How could anything possibly go wrong?

A seemless work of genius.

*Stifles urge to cackle like a loon*

Mon, 01/06/2014 - 10:19 | 4304134 BLOTTO
BLOTTO's picture

All i gotta say at 9:17am(EST) is that work ruins your life.

.

Happy Monday...

Mon, 01/06/2014 - 10:19 | 4304143 negative rates
negative rates's picture

It raises the GDP and then the MSM goes into it's happy talk mode and all is well.

Mon, 01/06/2014 - 10:28 | 4304165 malikai
malikai's picture

Wow. I would never have guessed QE was a health program.

And to think, if people had to suffer losses greater than 1.5%, all the blood on poor Benocide's hands.

Mon, 01/06/2014 - 10:41 | 4304200 pods
pods's picture

So was this 0.26% of the 1% or was this of gen pop?

Can't think of too many plebes that worry about those things.

pods

Mon, 01/06/2014 - 10:45 | 4304210 knukles
knukles's picture

The report went on to add that hospital admissions amongst the 1% rose sharply during subsequent prolonged rallies as their penises get rubbed raw in moments of irrational exuberance whilst in celebratory ritual jerkoffs.

Mon, 01/06/2014 - 10:51 | 4304216 Race Car Driver
Race Car Driver's picture

No mention of the rigged PM markets or those who invest in them. I guess they just kill themselves and avoid the hospitals altogether.

Mon, 01/06/2014 - 11:17 | 4304272 Rubbish
Rubbish's picture

I went short the QQQ's 3 days ago, it's giving me a fucking heart attack I tell ya.

Mon, 01/06/2014 - 11:34 | 4304340 aint no fortuna...
aint no fortunate son's picture

I'd like to know how much of those stats were related to admittance to alcohol and drug rehab centers

Mon, 01/06/2014 - 10:56 | 4304228 Oldwood
Oldwood's picture

Its all about us, you know. They have been making countless sacrifices for us, doing everything in their power to keep our spirits high (along with our spending and BTFD and BTFH). Its only a lucky break that their helping hands to our delusions have made them incredibly rich. Serendipity?

Mon, 01/06/2014 - 14:14 | 4304902 NeoLuddite
NeoLuddite's picture

Work is the curse of the drinking class.

Mon, 01/06/2014 - 10:16 | 4304121 Leonardo Fibonacci2
Leonardo Fibonacci2's picture

Well when the big stock market fall comes, the people will go from hospitals to the MORGUE

Mon, 01/06/2014 - 11:20 | 4304281 G.O.O.D
G.O.O.D's picture

Nothing that another load of Bolivian Marching Powder wont cure.

Mon, 01/06/2014 - 10:09 | 4304103 slaughterer
slaughterer's picture

Cue the flaming Zeppelin.  Bring it on.  Time to annihilate the weak long stockholders.  

Mon, 01/06/2014 - 10:11 | 4304114 TheFourthStooge-ing
TheFourthStooge-ing's picture

Cue Ozzy biting the head off of the Bernank.

Mon, 01/06/2014 - 10:15 | 4304118 fonzannoon
fonzannoon's picture

Come on this article is hysterical. Damn right people get panic attacks on down days, They panic their ass off until they hit submit and can relax knowing they BTFD,

Mon, 01/06/2014 - 10:14 | 4304110 G.O.O.D
G.O.O.D's picture

Jump you fvkers

Mon, 01/06/2014 - 10:11 | 4304111 youngman
youngman's picture

I just drink more....

Mon, 01/06/2014 - 10:15 | 4304133 samcontrol
samcontrol's picture

i smoke more Patagonian weed.

Mon, 01/06/2014 - 10:25 | 4304150 negative rates
negative rates's picture

Eat, drink, smoke, and be merry!

Mon, 01/06/2014 - 14:12 | 4304891 NeoLuddite
NeoLuddite's picture

Or as another poster said : "I prefer a full bottle in front of me to a full frontal lobotomy."

Mon, 01/06/2014 - 10:11 | 4304112 Rainman
Rainman's picture

Funny... these humans go full schizo losing fiat they never had possession of in the first place. Digits on a screen. Hilarious !

Mon, 01/06/2014 - 10:13 | 4304123 The Shootist
The Shootist's picture

Silly sheeple, fiat's for bankers.

Mon, 01/06/2014 - 10:23 | 4304144 samcontrol
samcontrol's picture

HERE is what I do . I get that fiat i have had never possession of and buy a house ,or book a month long holiday at the playacar palace.
Drinks on the beach , hilarious.!!, :)

Mon, 01/06/2014 - 10:14 | 4304113 Racer
Racer's picture

People are getting ill when the 'market' goes down???????

And I wonder if you looked into the actual figures just how accurately they are correlated, I can't believe there are many people left who are interested in the 'market' any longer

Mon, 01/06/2014 - 10:12 | 4304117 toady
toady's picture

The market is driving me insane.

Mon, 01/06/2014 - 10:13 | 4304122 samcontrol
samcontrol's picture

I have had huge losses two years in a row now thanks to my miners.
I have never been happier just got engaged and will buy the popcorn if needed, even if it means losing way more.
I decided to act like a kid not care and go full retard in my investing...that has worked in the past.
as for the rest of my life I will give a big effort and use common sense to do my best for myself and loved ones.

Mon, 01/06/2014 - 10:17 | 4304135 wisehiney
wisehiney's picture

Doctor, my eyes have seen the years
And the slow parade of fears without crying
Now I want to understand

I have done all that I could
To see the evil and the good without hiding
You must help me if you can

Doctor, my eyes
Tell me what is wrong
Was I unwise to leave them open for so long?

 

Thanks Jackson Browne

Mon, 01/06/2014 - 10:16 | 4304137 gwar5
gwar5's picture

Let me know when Blankfein has a stroke.

Mon, 01/06/2014 - 10:25 | 4304164 Winston Churchill
Winston Churchill's picture

i'd prefer a full scale aneurysm ,with blood gushing from his ears.

I live in hope.

Mon, 01/06/2014 - 10:53 | 4304222 Atomizer
Atomizer's picture

Or found in a autofellatio position with rigor mortis set in.

/sarc

Mon, 01/06/2014 - 10:25 | 4304155 muleskinner
muleskinner's picture

"A day of worry is worse than week of work"

Your miserable life is not worth the reversal of a Custer decision.

Seems as though some folks tend to put all of their eggs in one basket and if it doesn't tip over, they might rot instead.

Mon, 01/06/2014 - 10:28 | 4304156 Atomizer
Atomizer's picture

Wall Street Got Drunk

Read the comment section, see the vile progressive agenda. Yet, it has only gotten worse.  No further comment needed.

Mon, 01/06/2014 - 10:23 | 4304159 Platinum
Platinum's picture

This could be another way to thin out the herd. I'm sure more than a few of these medical emergencies were assisted by drugs, mostly of the powder type.

Mon, 01/06/2014 - 10:23 | 4304161 AldoHux_IV
AldoHux_IV's picture

Dumb just got dumber-- big data and academia have married and birthed the most irrelevant research. Here's another study: fucking researchers need to get a grip if my bullshit meter has anything to say.

Mon, 01/06/2014 - 10:34 | 4304174 Took Red Pill
Took Red Pill's picture

You think they're sick now, just wait til the shit really hits the fan

Mon, 01/06/2014 - 10:31 | 4304176 Musashi Miyamoto
Musashi Miyamoto's picture

Long Spoons. Were going to have to scrape the jumpers off Wall St. sidewalks before this chapter is over

Mon, 01/06/2014 - 10:39 | 4304201 Rising Sun
Rising Sun's picture

Suicide is painless

Mon, 01/06/2014 - 10:40 | 4304203 yogibear
yogibear's picture

No worry, the Federal Reserve is hiring more Fed bankster police to protect the criminals at the Fed.

The Federal Reserve armed their bankster goons with assault weapons and machine guns in case the looted sheeple realize what happened and get mad.  

Mon, 01/06/2014 - 11:30 | 4304304 G.O.O.D
G.O.O.D's picture

err dude, assault  weapons ARE Machine guns.

Tue, 01/07/2014 - 11:35 | 4308038 Cthonic
Cthonic's picture

 "Assault weapon" ?  Is that term some form of redundant political newspeak?

 

Mon, 01/06/2014 - 11:01 | 4304236 Pol Pot
Pol Pot's picture

I have Alan Greenspan up my ass to take the temp of the markets. Keeps me safe and healthy....and he is covered by Obamacare.

Mon, 01/06/2014 - 11:37 | 4304337 moneybots
moneybots's picture

How does that extrapolate out for Wall Street, when the market drops?

Mon, 01/06/2014 - 12:09 | 4304420 djsmps
djsmps's picture

Is there a wellness to bitcoin ratio?

Mon, 01/06/2014 - 13:07 | 4304633 TrustbutVerify
TrustbutVerify's picture

So now, as with so many other health related areas of ouor lives, for the good of the country Obamacare will need to control the volitility in the market?  

Mon, 01/06/2014 - 13:11 | 4304641 NoWayJose
NoWayJose's picture

I used to worry every night about the stock market and the positions I held, sometimes getting up extra early to read headlines (and ZH). Then during the year of 2013 I switched from stocks to PMs. I missed some gains in stocks, and lost some on my PMs, but I no longer have to check the headlines and I no longer worry.  Statistically, I am also down 15 points on my blood pressure.  Now I just wait for dips in the PM and add a little more here and there.

Mon, 01/06/2014 - 13:47 | 4304765 Conax
Conax's picture

January 6th is statistically the most depressing day of the year, add in the frigid weather and we should see record vapor locks and mental software crashes.

It's a good thing silver buyers are made of sterner stuff, or we'd all be  stroked out long ago.

Mon, 01/06/2014 - 14:03 | 4304829 lunaticfringe
lunaticfringe's picture

Strangely enough, all of my money is in gold. I sleep well at night knowing that no matter how much bankers try to manipulate and distort the price of gold that gold is REAL money. Pricing gold against a worthless and unbacked fiat currency is like me asking you to trade your car for a handful of dirt. For those who don't understand this concept-

In our current dystopian world the bankers have created some distorted view that paper is scarce and gold is plentiful. This shit will correct itself eventually. You'll want to own gold when it happens.

Mon, 01/06/2014 - 15:06 | 4305090 MeelionDollerBogus
MeelionDollerBogus's picture

We should advise these poor sheeple muppets into something much more stable, like bitcoin.
LOL

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