Effect of general economic mood on investor risk tolerance - implications for financial planning

Article

Santacruz, Lujer. 2009. "Effect of general economic mood on investor risk tolerance - implications for financial planning." JASSA. 2009 (1), pp. 35-42.
Article Title

Effect of general economic mood on investor risk tolerance - implications for financial planning

ERA Journal ID35541
Article CategoryArticle
Authors
AuthorSantacruz, Lujer
Journal TitleJASSA
Journal Citation2009 (1), pp. 35-42
Number of Pages8
Year2009
Place of PublicationSydney, NSW, Australia
ISSN0313-5934
Web Address (URL)http://www.finsia.com/Content/NavigationMenu/Informationservices/JASSA/Contentspages/JASSA_Contents_Issue8.htm
Abstract

This study indicates that the risk tolerance of Australian investors is not affected by general economic mood and, therefore, it is not necessary to adjust risk tolerance scores to account for changes in the investment climate. However, financial planners should recognise that herding behaviour could still result from investors being influenced by recent events.

Keywordsrisk tolerance, economic mood, risk assessment, risk profile, financial planning
ANZSRC Field of Research 2020380107. Financial economics
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Byline AffiliationsSchool of Accounting, Economics and Finance
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