#Japan #well-being #Chiyoda #Sawakami Investment #Investment Experience

The Relationship Between Investment Experience and Well-Being

A collaborative paper by Makiki Kumagai, Vice President of Sakakami Investment Corporation, and former research advisor, Jinpei Hirakawa, has been published in the prestigious Journal of Neuroscience, Psychology, and Economics. This academic journal, overseen by the American Psychological Association, serves as a significant resource for researchers and professionals interested in the fusion of psychology and economics, diving into the previously unexplored connection between investment experience and well-being.

Overview of the Paper

The study investigates how the presence or absence of investment experiences influences psychological well-being, particularly life satisfaction and a sense of purpose. It measures five psychological parameters across four groups categorized by their investment behaviors:

1. Long-Term Stock Investors - Individuals investing in funds geared towards long-term holdings.
2. General Stock Investors - Those who engage in more traditional stock market activities.
3. Cryptocurrency Investors - Participants involved with digital currencies.
4. Non-Investors - Individuals who do not partake in any form of investment.

Five Psychological Parameters

The study evaluates these groups based on the following five psychological criteria:

• - Long-Term Orientation - The extent of a person's foresight regarding future investments.
• - Life Satisfaction - Overall contentment with life.
• - Sense of Purpose - Associated with optimism, a positive outlook towards the future, and perceived meaningfulness in life.
• - Positive Emotions - Feelings of joy, fulfillment, pride, love, compassion, surprise, and awe.
• - Attitude Toward Ambiguity - Including anxiety about uncertainty, absolutism, and the desire for novelty and complexity.

Results and Considerations

The findings indicate that investors report significantly higher levels of life satisfaction and a sense of purpose compared to non-investors. Among the measured psychological parameters, both life satisfaction and sense of purpose displayed higher averages within the investment groups. Several reasons could contribute to these observations:
1. Expectation of Economic Stability - The anticipation of future financial security might enhance the current psychological well-being of investors.
2. Purpose and Self-Efficacy - The act of investing may foster a sense of purpose and self-efficacy, suggesting personal meaning beyond mere financial gains.
3. Social Connection - Recognizing ties between investors and companies may further contribute to overall well-being.

The study implies a connection between investment experiences and positive emotions such as satisfaction, pride, and awe. Notably, those identified as investors scored higher on these metrics compared to the non-investing group. This suggests that engagement in investment activities is associated with feelings of achievement and personal growth.

Specific Investment Behaviors Linked to Positive Emotions

Further, the data suggests certain investment behaviors may correlate with specific positive emotions. For instance, within the long-term stock investor group, satisfaction scores were markedly high, while the cryptocurrency investors reported higher levels of pride. These results reveal that specific investment activities may evoke distinct positive emotional outcomes.

About Sakakami Investment Corporation

Founded in July 1996, Sakakami Investment Corporation is Japan's first independent direct-sales investment trust, not linked to any financial institutions or banks. Since its inception, it has been committed to empowering the general public in building wealth through long-term investments. Upholding a mission to make the world more interesting through long-term investment relationships among companies, customers, and management, Sakakami strives to foster engagement and growth in the investment community.
More Information

For further reading on the research, the paper is available here.