Are Women Better Investors Than Men?

by | Aug 8, 2019 | News | 0 comments

 

Men and women behave differently. From birth, there are certain expectations put on boys and others put on girls. It’s no wonder the two genders perform differently in the stock market. Have you ever wondered who performs best? According to Fidelity’s survey, “Women and Money”, only 9% of respondents believe women are better investors than men. Those 9% were correct.

Long-Term Focused

Rather than the short-term investing men typically focus on, women tend to look at the bigger picture such as retirement income. For most, focusing on the long-term can be a profitable strategy because of market volatility. Selling an investment that’s price recently dropped may not always be wise because the investment can potentially bounce back.  

Risk Conscious

Do you know your risk tolerance? If not check out this article https://ronaldgelok.com/whats-your-risk-tolerance/ on how to determine yours. Whether you’re extremely conservative or a wild risk taker, be wary of extremes. The BlackRock Investor Pulse survey shows 72% of women avoided equities & bonds with more risk. While risk can be a good thing, it can also be a harmful. The excitement (and fear) of risk is due to uncertainty. While great risk can bring great returns, it can also produce small or no returns. Keep in mind, t most investing involves risk and without it, the returns would likely be minimal to none.

Holistic Investing

Many women tend to focus on lifetime and family goals, instead of performance. According to the above studies, the buy and hold approach so many women stick with seems to lead to a better return in market volatility. This approach can also help calm nerves during market drops.

Patience

Investing can be anxiety-inducing. The market volatility can scare many away, but if you’ve been investing for a while, you may have an idea of how the “game” works. Still, so many tend to sell or trade as soon as their investment drops. The Warwick Business School conducted a 3-year study of 2,800 men and women investing with Barclays’ Smart Investor and found women traded 49% less shares and 67% less funds than men. The study concluded that women are more patient with their investments than men because they allow them to develop and evolve.

What Now?

No matter your gender, you have the potential to be a smart investor. The power is in your hands, despite what studies say. The above practices combined with the knowledge and assistance of a financial professional can lead to better investing, returns, and portfolio.  Whether you currently invest or not, RGA is here to help! We specialize in a holistic, long-term approach to retirement income planning. With our unique strategies, we can potentially help you achieve your dream retirement. Interested in learning more? Come in a for a complimentary consultation! Call 1-800-467-8152 or email info@ronaldgelok.com to schedule.