“You don’t have to be a CFA, but if you have a basic understanding of risk, 401(k)s and the capital markets, much of your anxiety will disappear.” (Getty Images)
Do you have money on the mind? It may adversely affect your physical and mental health, particularly if you’re invested in the stock market.
A 2014 study by two University of California at San Diego professors tracked hospitalizations in California over three decades and found daily fluctuations in stock prices had “an almost immediate impact on the physical health of investors, with sharp price declines increasing hospitalization rates over the next two days.” The effect was even stronger for conditions related to mental health such as anxiety, panic attacks and depression.
For a particularly dramatic example, the researchers looked at Oct. 19, 1987 – nicknamed Black Monday – when the U.S. stock market fell by almost 25 percent. Hospital admissions in California spiked more than 5 percent that same day, which the authors say suggests stock declines have an almost immediate impact on the psychological states of investors. The very next day, hospital admissions returned to normal.
After a relatively smooth 2017, stock market volatility has returned in 2018. Could it be impacting your mental health? Here are some steps to take to calm stock-market-induced anxiety.