Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236750 
Year of Publication: 
2021
Series/Report no.: 
DIW Discussion Papers No. 1962
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
We present evidence from a repeated survey on risky asset holdings carried out on a representative sample of the German population six times between April and June 2020. Given the size of the Covid-19 shock, we find little evidence of portfolio rebalancing in April 2020. In May, however, individual investors started buying heavily, fueling market recovery. The cross-section shows large differences as young, educated, high income, and risk tolerant investors are net buyers throughout and, thus, benefit from the stock market recovery. Older individuals, parents of young children, and individuals affected by adverse liquidity shocks from Covid-19 are net sellers. Given the high risk of illness, older people are hit by dual blows to both health and finances.
Subjects: 
risky assets
distributional effects
individual investment behavior
health and income shocks
expected adverse shocks
JEL: 
D31
G50
H31
Document Type: 
Working Paper

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