Tag Archives: rui yao

Investment Risk Tolerance Affected by Age, Economic Climate, MU Study Shows

COLUMBIA, Mo. – As the U.S. economy continues to lag, many investors remain wary about taking risks with the stock market. Now, researchers at the University of Missouri have concluded that this attitude toward investment risk-taking is influenced by the age of the investor and the economic climate of the time period. Rui Yao, an assistant professor of personal financial planning in the College of Human Environmental Sciences at MU, found that willingness to take financial risks, or “risk tolerance,” decreases as investors age.

“Age has a pragmatic relationship with financial risk,” Yao said. “Each additional year of life represents a shortened time horizon for recouping market losses. In addition, individuals approaching or in retirement may shift focus from asset accumulation to asset preservation. These individuals may become relatively more concerned about potential loss of money when they are closer to retirement or no longer have a steady source of income.” (more…)

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‘Chinese Households Save More than American Households’

*Saving motives a major factor in increased household savings*

COLUMBIA, Mo. – With the global economy in a state of unrest, saving money seems to be an obvious strategy for households to protect themselves. But are global households saving enough? Researchers at the University of Missouri have compared savings habits of households from two of the world’s most powerful economies: China and the United States. Rui Yao, an assistant professor in the personal financial planning department in the College of Human Environmental Sciences at the University of Missouri, found that urban Chinese households, on average, save much more than American households. She says the difference stems from saving motives.

“Saving is one of the critical tools that households utilize to achieve financial goals and to improve financial well-being,” Yao said. “By looking at saving motives for households in each country, we hope to explain the difference in saving rates across these two countries.” (more…)

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MU Researcher Says Chinese Credit Market Remains Underdeveloped

*Survey reveals urban Chinese households maintain high saving rates and are unwilling to utilize credit* 

COLUMBIA, Mo. ­— The Chinese government has made several reforms to its economic policies in recent years. Despite these reforms, a new study shows that Chinese households are not utilizing their credit market to its fullest extent. Rui Yao, a researcher in the department of Personal Financial Planning in the College of Human Environmental Sciences at the University of Missouri, says a recent survey of urban Chinese households shows that the Chinese credit market remains underdeveloped.

(more…)

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