Chin, A and Bruine de Bruin, W orcid.org/0000-0002-1601-789X (2017) Understanding the formation of consumers' stock market expectations. Journal of Consumer Affairs, 51 (1). pp. 200-210. ISSN 0022-0078
Abstract
To understand consumers’ investment decisions, national surveys such as the Health and Retirement Study elicit consumers’ expectations about stock market movements. Analyses of stock market expectations show substantial heterogeneity between consumers. It is commonly speculated that this heterogeneity reflects variations in the beliefs underlying consumers’ stock market expectations, that is, their “mental models.” In an online survey of American adults, we find that consumers think about different economic and political issues when generating stock market expectations for the next year. Regardless of the specific issues on which consumers focused, however, their assessments of the issues seemed to reflect a single underlying perception of changes in economic conditions. Regression analyses show that variation in stock market expectations is related to consumers’ overall assessments of economic developments. We discuss the implications of these results for economic surveys and investment communications.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | (c) 2016 by The American Council on Consumer Interests. This is the peer reviewed version of the following article: Chin, A. and Bruine De Bruin, W. (2016), Understanding the Formation of Consumers' Stock Market Expectations. Journal of Consumer Affairs. doi: 10.1111/joca.12110, which has been published in final form at http://dx.doi.org/10.1111/joca.12110. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. |
Keywords: | stock market expectations, expectations formation, consumer surveys |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) > Management Division Decision Research (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 02 Mar 2016 11:54 |
Last Modified: | 29 Mar 2018 00:38 |
Published Version: | http://dx.doi.org/10.1111/joca.12110 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/joca.12110 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:95244 |