<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>We examine how generations X, Y, and Z might react to market-moving events over short- and long-term horizons to maintain an optimal balance among risk, return, and investor preferences. To analyze various portfolio variants, we use data on selected global assets and several types of economic and non-economic events for 2000-2021H1, applying the mean-variance optimization procedure. According to our results, in optimal portfolios, fixed-income assets dominate and are the main driver of portfolio adjustments. Portfolios with short-term horizons with less risk-averse investors and those for generation Z are the most reactive to analyzed types of events. None of the events <italic>per se</italic> creates an extraordinary opportunity to increase returns. However, expansionary monetary policy generates the greatest potential for incremental returns. Our findings provide practical implications for investors on how to adjust their portfolios in response to significant market events.</p>
</abstract>

We examine how generations X, Y, and Z might react to market-moving events over short- and long-term horizons to maintain an optimal balance among risk, return, and investor preferences. To analyze various portfolio variants, we use data on selected global assets and several types of economic and non-economic events for 2000-2021H1, applying the mean-variance optimization procedure. According to our results, in optimal portfolios, fixed-income assets dominate and are the main driver of portfolio adjustments. Portfolios with short-term horizons with less risk-averse investors and those for generation Z are the most reactive to analyzed types of events. None of the events per se creates an extraordinary opportunity to increase returns. However, expansionary monetary policy generates the greatest potential for incremental returns. Our findings provide practical implications for investors on how to adjust their portfolios in response to significant market events.

Market-moving events and their role in portfolio optimization of generations X, Y, and Z

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

We examine how generations X, Y, and Z might react to market-moving events over short- and long-term horizons to maintain an optimal balance among risk,...

Market-moving events and their role in portfolio optimization of generations X, Y, and Z

Article Category: Empirical Paper

Published Online: Dec 31, 2023

Page range: 371 - 397

Received: Jun 18, 2023

Accepted: Nov 22, 2023

DOI: https://doi.org/10.2478/ijme-2024-0001

Keywords
market events, risk aversion, portfolio management, portfolio vulnerability

© 2023 Małgorzata Iwanicz-Drozdowska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Market-moving events and their role in portfolio optimization of generations X, Y, and Z

Article Category: Empirical Paper

Published Online: Dec 31, 2023

Page range: 371 - 397

Received: Jun 18, 2023

Accepted: Nov 22, 2023

DOI: https://doi.org/10.2478/ijme-2024-0001

Keywordsmarket events, risk aversion, portfolio management, portfolio vulnerability

© 2023 Małgorzata Iwanicz-Drozdowska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
market events, risk aversion, portfolio management, portfolio vulnerability