A 25% Market Decline Corresponded With A Spike Of Over 5% In Admissions To CA Hospitals For Mental Health Conditions

Did you know that losing money in the stock market could cost you your life? A recent study published in the American Economic Journal found that “wealth shocks” “strongly affect physical health, mental health, and survival rates.” Pamela Yellen, financial investigator and two-time bestselling author, explains why even milder market losses can be hazardous to your physical and mental health.

losing money in the stock market

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Findings from Pamela on losing money in the stock market:

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  • People with as little as 10 percent of their wealth in the market who lose just 10 percent stand an increased risk of dying early, or suffering health problems such as high blood pressure and depression, finds a study published in the American Economic Journal.
  • A market loss as little as 1½ percent (which can happen on an almost daily basis during periods of higher volatility) correlated with a .5 percent increase in fatal car crashes, a second study
  • A 25 percent market decline corresponded with a spike of over 5 percent in admissions to California hospitals for mental health conditions like anxiety, panic attacks, and major depression, according to third study.

How can losing money in the stock market lead to health problems and early death? When people unexpectedly lose money they often feel strong emotions such as anxiety, anger and frustration that can take a toll on their physical and mental health, Pamela says. The effect is likely magnified when market losses are larger, and for older investors nearing retirement.

“Market volatility is a fact of life. If you have money in the market, there is no avoiding the ups and downs,” she says. “We had two market corrections of 10 percent or more last year.”

Pamela can share ways to diversify retirement savings so you don't have to risk your wealth – or your health.

“You could get an effective annual return of 5-7 percent over time, but without the risk of stocks, bonds, real estate or other volatile investments,” she says.



About the Author

Pamela Yellen
Pamela Yellen is founder of Bank On Yourself, a financial investigator and the author of two New York Times best-selling books, including her latest, "The Bank On Yourself Revolution: Fire Your Banker, Bypass Wall Street, and Take Control of Your Own Financial Future." Pamela investigated more than 450 financial strategies seeking an alternative to the risk and volatility of stocks and other investments, which led her to a time-tested, predictable method of growing wealth now used by more than 500,000 Americans.