Emily Chan
People heavily invested in the stock market don’t just run the risk of losing all their money — they also have an increased risk of heart attacks, strokes, and even committing suicide. The stock market’s fluctuations can have a significant effect on a person’s physical and mental health.
Researchers from Fudan University in Shanghai, China, analyzed more than 12 million deaths between 2013 and 2019 in China.
They found that there was a hike in the number of deaths associated with cardiovascular events and suicide when the stock market experienced both major declines and gains.
Even the minor ups and downs in stock prices that occur daily were linked to higher mortality risks.
For instance, a one percent drop in a major Chinese stock index correlated with a 0.74 percent to 1.04 percent increase in deaths from cardiovascular events such as heart attacks and strokes. It was also associated with a 1.77 percent increase in suicides.
The health risks were not just tied to market downturns. On days with significant positive market performance, the researchers saw higher numbers of cardiovascular deaths and suicides, although they were at lower rates than on days with losses. The effects lasted for up to two days afterward.
The findings suggest that major fluctuations in the stock market — good or bad — can negatively impact health. The study may have been conducted in China, but it likely applies to other parts of the world as well.
China has the second-largest stock market in the world, with more individual investors than institutional investors. As a result, stock market swings affect a large portion of the population.
The psychological stress caused by stock market volatility can lead to a whole bunch of physical and mental symptoms, such as high blood pressure, changes in heart rate and inflammation levels, as well as feelings of anxiety and depression. These can all contribute to an elevated risk of cardiovascular events or push individuals toward suicidal thoughts and actions.
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