⁷“When risk aversion increases, investors tend to be more cautious and prefer safer investments over riskier ones, such as stocks. As a result, there is a decrease in demand for stocks, which leads to a decrease in their prices. In general, an increase in risk aversion can cause a decrease in the overall stock market, as investors sell off their shares to move their money into safer investments, such as bonds or cash. This can result in a downward trend in the stock market indices. However, it’s important to note that the impact of risk aversion on the stock market can be complex and multifaceted, and there are many other factors that can influence the stock market as well. For example, government policies, economic data, and news events can all have a significant impact on the stock market, regardless of the level of risk aversion among investors.” – ChatGPT version 2022-02-13