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Risky Asset Holdings During Covid‐19 and their Distributional Impact: Evidence from Germany

We present evidence from a repeated survey on risky asset holdings carried out on a representative sample of the German population six times between April and June 2020. Given the size of the Covid‐19 shock, we find little evidence of portfolio rebalancing in April 2020. In May, however, individual...

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Autores principales: Menkhoff, Lukas, Schröder, Carsten
Formato: Online Artículo Texto
Lenguaje:English
Publicado: John Wiley and Sons Inc. 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8661715/
https://www.ncbi.nlm.nih.gov/pubmed/34908596
http://dx.doi.org/10.1111/roiw.12549
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author Menkhoff, Lukas
Schröder, Carsten
author_facet Menkhoff, Lukas
Schröder, Carsten
author_sort Menkhoff, Lukas
collection PubMed
description We present evidence from a repeated survey on risky asset holdings carried out on a representative sample of the German population six times between April and June 2020. Given the size of the Covid‐19 shock, we find little evidence of portfolio rebalancing in April 2020. In May, however, individual investors started buying heavily, parallel to market recovery. The cross‐section shows large differences as young, educated, high income, and risk tolerant investors are net buyers throughout and, thus, benefit from the stock market recovery. Older individuals, parents of young children, and individuals affected by adverse liquidity shocks from Covid‐19 are net sellers. Given the high risk of illness, older people are hit by dual blows to both health and finances.
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spelling pubmed-86617152021-12-10 Risky Asset Holdings During Covid‐19 and their Distributional Impact: Evidence from Germany Menkhoff, Lukas Schröder, Carsten Rev Income Wealth Original Articles We present evidence from a repeated survey on risky asset holdings carried out on a representative sample of the German population six times between April and June 2020. Given the size of the Covid‐19 shock, we find little evidence of portfolio rebalancing in April 2020. In May, however, individual investors started buying heavily, parallel to market recovery. The cross‐section shows large differences as young, educated, high income, and risk tolerant investors are net buyers throughout and, thus, benefit from the stock market recovery. Older individuals, parents of young children, and individuals affected by adverse liquidity shocks from Covid‐19 are net sellers. Given the high risk of illness, older people are hit by dual blows to both health and finances. John Wiley and Sons Inc. 2021-10-23 2022-06 /pmc/articles/PMC8661715/ /pubmed/34908596 http://dx.doi.org/10.1111/roiw.12549 Text en © 2021 The Authors. Review of Income and Wealth published by John Wiley & Sons Ltd on behalf of International Association for Research in Income and Wealth https://creativecommons.org/licenses/by-nc-nd/4.0/This is an open access article under the terms of the http://creativecommons.org/licenses/by-nc-nd/4.0/ (https://creativecommons.org/licenses/by-nc-nd/4.0/) License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non‐commercial and no modifications or adaptations are made.
spellingShingle Original Articles
Menkhoff, Lukas
Schröder, Carsten
Risky Asset Holdings During Covid‐19 and their Distributional Impact: Evidence from Germany
title Risky Asset Holdings During Covid‐19 and their Distributional Impact: Evidence from Germany
title_full Risky Asset Holdings During Covid‐19 and their Distributional Impact: Evidence from Germany
title_fullStr Risky Asset Holdings During Covid‐19 and their Distributional Impact: Evidence from Germany
title_full_unstemmed Risky Asset Holdings During Covid‐19 and their Distributional Impact: Evidence from Germany
title_short Risky Asset Holdings During Covid‐19 and their Distributional Impact: Evidence from Germany
title_sort risky asset holdings during covid‐19 and their distributional impact: evidence from germany
topic Original Articles
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8661715/
https://www.ncbi.nlm.nih.gov/pubmed/34908596
http://dx.doi.org/10.1111/roiw.12549
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