Bloomberg News (1/5, Kearns) reports “falling stocks get people worried sick,” noting that a “one-day drop in the stock around 1.5 percent is followed by about a 0.26 percent increase in hospital admissions on average over the next two days,” citing a March 2013 study by Joseph Engelberg and Christopher Parsons, associate professors of finance at the University of California at San Diego. Engelberg, who presented the study at the American Economic Association’s annual meeting in Philadelphia, said “It’s a very straightforward result.” The article says “the results were based on almost” 30 years of daily admission data for California hospitals. In fact, hospital admissions “rise on days when shares fall,” and “people are hospitalized disproportionately for mental conditions.”
Related Links:
— “Stocks Worry Investors Sick as Losses Spur More Hospital Visits, “Jeff Kearns, Bloomberg News, January 5, 2014.