I spent most of my career in wealth management and there, you constantly have discussions with clients about how much to invest in stocks and other assets. As part of these discussions, you start to understand that the reasons why people invest in stocks and how much are typically highly personal, which is why
"look into someone’s experiences to identify their risk preferences " That is indeed a very good question to ask people.
To be honest I also think that the stock market now functions as a savings vehicle beyond pensions ( 401k and the like) since there is zero or even negative yields in bank accounts and people just want to put their savings to work (Boomers had savings accounts with 5% yields!)
The FED might know this and therefore kindly does its best to keep the market going up up up ( but that's more wishful thinking)
"look into someone’s experiences to identify their risk preferences " That is indeed a very good question to ask people.
To be honest I also think that the stock market now functions as a savings vehicle beyond pensions ( 401k and the like) since there is zero or even negative yields in bank accounts and people just want to put their savings to work (Boomers had savings accounts with 5% yields!)
The FED might know this and therefore kindly does its best to keep the market going up up up ( but that's more wishful thinking)
Hi Joachim. Thanks for your blog. Please do send me a copy of your research ayodele.r.moses@gmail.com
Thank you