Household Asset Portfolios during the Covid-19 Pandemic

78 Pages Posted: 16 Aug 2020

See all articles by Sumit Agarwal

Sumit Agarwal

National University of Singapore

Keyang Li

Tsinghua University - Hang Lung Center for Real Estate; Tsinghua University - Department of Construction Management

Yu Qin

National University of Singapore (NUS) - Department of Real Estate

Jing Wu

Tsinghua University - Hang Lung Center for Real Estate; Tsinghua University - Department of Construction Management

Jubo Yan

Nanyang Technological University - School of Social Sciences

Date Written: August 16, 2020

Abstract

In this paper, we investigate the determinants of household asset portfolios during the COVID-19 outbreak in China. Using an online longitudinal survey and focusing on a broad spectrum of assets, including stocks, gold, wealth management products, and houses, we show that more confirmed COVID-19 cases in a city led to both more upward and downward adjustments for all four types of assets. The results indicate potential divergent beliefs among the respondents during the pandemic. In addition, respondents were more likely to invest more in gold if they felt more anxious, whereas higher inflation expectation led to less investment in gold.

Keywords: COVID-19; Investment Decision; Emotion; Expectation; Longitudinal Survey

JEL Classification: D84, D91, G51, I18, I15

Suggested Citation

Agarwal, Sumit and Li, Keyang and Qin, Yu and Wu, Jing and Yan, Jubo, Household Asset Portfolios during the Covid-19 Pandemic (August 16, 2020). Available at SSRN: https://ssrn.com/abstract=3674702 or http://dx.doi.org/10.2139/ssrn.3674702

Sumit Agarwal

National University of Singapore ( email )

15 Kent Ridge Drive
Singapore, 117592
Singapore
8118 9025 (Phone)

HOME PAGE: http://www.ushakrisna.com

Keyang Li (Contact Author)

Tsinghua University - Hang Lung Center for Real Estate ( email )

HeShanHeng Building
Beijing, 100084
China

Tsinghua University - Department of Construction Management ( email )

Heshanheng Building
Tsinghua University
Beijing, 100084
China

Yu Qin

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

Jing Wu

Tsinghua University - Hang Lung Center for Real Estate ( email )

HeShanHeng Building
Beijing, 100084
China

HOME PAGE: http://thuwujing.net

Tsinghua University - Department of Construction Management ( email )

Heshanheng Building
Tsinghua University
Beijing, 100084
China

HOME PAGE: http://thuwujing.net

Jubo Yan

Nanyang Technological University - School of Social Sciences ( email )

HSS 04-68, 14 Nanyang Drive
Singapore, 639798
Singapore

HOME PAGE: http://juboyan.weebly.com

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