A Spectrem study reveals that 54 percent of men enjoy investing while only 36 percent of women admit to enjoying the investment game. Women remain consistent among wealth segments, while 68 percent of investors with a net worth of $5 million or more say they like investing and do not want to give it up.
Obviously, men get something out of investing that women do not.
Two other factors where gender plays a role in investment success: Men hold on to losing stocks longer with the belief that there will be a rebound, and men are more interested in a quick win, a hot stock that will explode as opposed to a slow rising stock.
Women are less likely to form a bond with their investment decisions. Although women are considered more sentimental than men in general, when it comes to investing, women are more willing to let loose of stock that’s dropping. Just as women are more risk averse, they are also more “loss” averse.
According to the Spectrem study, 78 percent of women use a financial advisor of some sort, while only 72 percent of men do. Eighty-eight percent of men consider themselves either knowledgeable or fairly knowledgeable about financial products and investments, while only 63 percent of women feel that way about themselves.
Fifteen percent of women consider themselves advisor dependent and that jumps to 23 percent of women in the Ultra High Net Worth wealth segments, with a net worth between $5 million and $25 million. Only 11 percent of men are advisor dependent, and that percentage is consistent throughout wealth segments.
The desire for information from others indicates patience in investing, which can lead to avoiding mistakes made by rushing into an investment.
Risk aversion, or its opposite, the thrill of risk, plays a role in the feelings men and women have toward investing in general.
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