If the characteristics of the husband age

The man in the street has its concerns and constraints. The events that give rhythm to life (entrance to the University, marriage, divorce, health problems...) also have impacts and effects on its portfolio and its investment policy, according to various studies. Between emotion and reason, the individual must strive to constitute a heritage that protects against the inconveniences and the vicissitudes of existence. A compromise between performance and protection against extra-financial risks.

Work

Common sense and financial theory teaches that one must take into account in the constitution of its heritage of risks such as the one to lose his job. Its human capital to pay him in some sort of dividends, which are its revenues. And the latter, of course, are dependent on the health of his company, and the economy in General. Thus, the individual should by its savings strive neutralize and cover all or part of the risks to his job. It is exactly the opposite that recognize academic work. Will, a person working in a particular sector focus, when he invested his savings, the purchase of shares in companies belonging to the same sector. The reasons He feels, wrongly or rightly, better able to evaluate them, understand, analyze... It feels more comfortable with these titles, believing, by his own profession, have a good knowledge of the sector, he thus wants to use to make money on the stock exchange. Problem: if its industry through a bad pass, his employment and its heritage will be affected.

This tendency to focus its hazards (work and heritage) on a same industry is less strong among more knowledgeable and sophisticated individuals.

Family

Family, largely unpredictable events (marriage, divorce, widowhood) are not without influence on the policy of placement of individuals. For example, if this is the first, a marriage reflected by an increase in the share of investments in risky assets. Two, it is apparently more reckless in its investments. Of work show that women are less likely than men to invest in a risky as actions. They have a more conservative and less adventurous investment policy. Women who are married to men older or less educated are less likely than others to take risks and put their money into shares. Thus, with three to five year age difference, the probability that they are investing in the stock market is reduced by 15. There is the same thing when they represent more than half the income of the household: caution and they thus tend to focus on bond investments.

If the characteristics of the husband (age...) influence the decisions of investment by the wife, the reverse is not true. Divorce affects behaviour of saving the men and women differently. Leak in front or regained freedom, the first seem to find the taste of risk and prefer investments in shares while the seconds, cautious, then increase the share of their investment safe and without risk.

Widowhood translates for both sexes increased investments without risk, but with an effect more pronounced for women. And if this event occurs just before retirement, the decrease in investments in risky assets may exceed 15.

Health

The individual is in good health and can expect to live long, most tend to invest in risky assets. This is what it took for granted for a long time. Recent work of the US Federal Reserve economists have however questioned the results of previous studies.

However, it seems well established that the existence of additional disease covers has an effect on people investment policy and guidance. This is what was found in the United States. Indeed, across the Atlantic, the majority of Americans age 65 receive health insurance through the Medicare program. But its shortcomings lead them to opt for insurance (Medigap, Medicare HMO) . And those who have such additional assurances were a part of their investment in assets risky from 6 to 12 greater than those with only a standard insurance. More covered against the risks to their health, individuals would be more willing to take more risks in their investments, investing, directly or indirectly, on the actions.

Today, the reform of American health care system is one of the major projects of the President Barack Obama, who particularly wishes to expand health coverage. Decisions which could have consequences for Wall Street and the demand for shares.

Religion

Religion influences the choice of investments of individuals. This is what demonstrates for the first time a study on the Dutch market and over the period 1995-2008. Believers are thus more likely to save that atheists. Catholics and protestants are less likely than others to invest in risky assets (stocks and bonds), to a lesser extent, because of a higher risk aversion and a stronger desire to pass on their heritage to their descendants. "Religious households wishing to leave a legacy to their heirs will probably not"play"with the money to their children, which led to less invest in adventurous and random investments", say researchers. But, of Catholics and protestants longer investment horizon should lead them, according to financial theory, to be more risky assets to benefit from their more important long-term yields.

Unlike the Catholics and protestants, Evangelicals, them more vested in risky assets. In any case, these results are consistent with the observation that countries with Catholic dominant as the Italy or the Spain display hold their population shares very low rates to the look of a country such as the United States or the Evangelical Church is much more present.

University

Individuals from the same University share common characteristics of investment choices and structure of their portfolios. Thus, they tend to invest in the same business and type of values as their former schoolmates. More links are strong between them, more portfolios focused on a small number of values they choose. These sheep behaviors are particularly strong. The links on the banks of the University have a major impact on the rest of their lives to investors. It is not in any type of education they receive in such University which would be decisive in their future behavior in risk taking. These are the interactions and attendance (friendship, camaraderie...) which may explain the similarities in their investment behaviors. Links which survive and persist after they left the University, including through the network of former students. The effect highlighted by this study is more important than the other two forms of interaction found by academic research. The first demonstrates the reciprocal influence between individuals of the same geographic community (city, country...), which thus tend to invest in companies that have chosen the other members of their community. The second interaction demonstrates the fact that an individual will be influenced in his choice of investments by the decisions of his co-workers in a same professional world. These two types of geographical and professional influences are less important than that which is attributable to their classmates of University. Student fraternities would thus not only places of sprees Agape but also of the places where in part shape reflexes and future investors "psyche".