Women tend to be 'risk-appropriate' investors, expert says: How that helps them in volatile markets
Women generally adopt a more conservative investment strategy compared to men, which can be beneficial during market volatility. Research indicates that women tend to outperform men in the long run by maintaining their portfolio allocations rather than engaging in frequent trading. Experts argue that the perception of women as emotional investors is a misconception, as they often prioritize long-term financial security.
- ▪Women tend to invest more conservatively than men, especially during market swings.
- ▪Research shows that women outperform men in investing by 40 basis points over time.
- ▪Experts emphasize that women are often 'risk-appropriate' rather than risk-averse.
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Many studies show that women tend to invest more conservatively than men. In times of wild market swings, their approach can pay off. Since the Feb. 28 start of the war with Iran, the major stock indexes have zigzagged, dropping before rebounding to reach all-time highs last week. Amid such volatility, women are more likely to adopt a long-term, buy-and-hold investing strategy compared to their male counterparts, research shows. When it comes to investing, women are generally thought of as more risk-averse than men, said Mary Ellen Iskenderian, president and CEO of Women's World Banking.
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