Although the nation was experiencing an economic downturn due to the COVID-19 pandemic outbreak, we nonetheless observed an increase in household equity share value relative to both domestic market capitalization and retail investors’ trading volume. In this paper, we aim to interpret the reasons underlying this seemingly unexpected phenomenon. We investigate portfolio choices with stocks, bonds, and life annuities under an inverse S-shaped probability distortion function. The results indicate that people invest more heavily in risky assets and buy more annuities when reducing their savings in risk-free accounts, which is indeed consistent with the reality.

中文翻译：

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为什么在 COVID-19 大流行期间有更多的家庭股票市场参与？

尽管该国因 COVID-19 大流行爆发而经历经济衰退，但我们仍然观察到家庭股票价值相对于国内市值和散户投资者的交易量有所增加。在本文中，我们旨在解释这一看似出乎意料的现象背后的原因。我们在反 S 形概率失真函数下研究股票、债券和人寿年金的投资组合选择。结果表明，人们在减少无风险账户储蓄的同时，更多地投资于风险资产并购买更多年金，这确实与现实相符。