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Participant ○○○

Men are Stocks Women are Bonds

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Participant ○

Re: Men are Stocks Women are Bonds

Galeno,

The author of the article did not say "Men are stocks, women are bonds."

You did.

Sexism and stereotyping are incredibly unhelpful.

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Participant ○○○

Re: Men are Stocks Women are Bonds

Of course I said it.

I was trying to be cute with a reference to that book "Men are from Mars Women are from Venus". My attempt failed.

That said. My wife and daughter like 40/60. I like 60/40. We're at 50/50.

The article supports my position vs their position. In this low yield environment a port needs more stocks (or other riskier assets) to DRAG underwater bonds.

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Frequent Contributor

Re: Men are Stocks Women are Bonds

There is indeed no generalization according to gender.

However just as a case, my wife tends to be more conservative in investment than I am.  We work it out to hit a balance.

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Frequent Contributor

Re: Men are Stocks Women are Bonds

What seems to be generally the case is that men tend to be overconfident.

In another thread, Bentley cited one study by Barber and Odean.

Well, here's another:

Boys will be Boys: Gender, Overconfidence, and Common Stock Investment

Brad Barber and Terrance Odean

Abstract


 

Theoretical models of financial markets built on the assumption that some investors are overconfident yield one central prediction: overconfident investors will trade too much. We test this prediction by partitioning investors on the basis of a variable that provides a natural proxy for overconfidence – gender. Psychological research has established that men are more prone to overconfidence than women. Thus, models of investor overconfidence predict that men will trade more and perform worse than women. Using account data for over 35,000 households from a large discount brokerage firm, we analyze the common stock investments of men and women from February 1991 through January 1997. Consistent with the predictions of the overconfidence models, we document that men trade 45 percent more than women and earn annual risk-adjusted net returns that are 1.4 percent less than those earned by women. These differences are more pronounced between single men and single women; single men trade 67 percent more than single women and earn annual risk-adjusted net returns that are 2.3 percent less than those earned by single women.

 

Bob

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Explorer ○○

Re: Men are Stocks Women are Bonds

In certain circumstances, and certain concentrations, both estrogen and testosterone can cloud judgment.

But I'd say that, on balance, the deletrious effects of the latter have been both more severe and more frequent.  And not just in the realm of investing.

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Frequent Contributor

Re: Men are Stocks Women are Bonds


@galeno wrote:

At least in my family.

https://www.morningstar.com/articles/987464/why-your-portfolio-might-need-more-stocks


         I must be the luckiest guy alive. I’am the one that insisted my wife take part in investing. I provide the gut, plan and “vision” as a former contract analyst she provides the computer work. We then both explain our thinking and reach a consensus.  As retirees now we’ve put everything on auto invest and just look for corrections and sales like the one just passed to add some cheap income and keep sharp or slow down the dulling process.

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Frequent Contributor

Re: Men are Stocks Women are Bonds

@steelpony10 : A fine example/inspiration for many to follow.

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Re: Men are Stocks Women are Bonds


@ViveBene wrote:

Galeno,

The author of the article did not say "Men are stocks, women are bonds."

You did.

Sexism and stereotyping are incredibly unhelpful.


https://www.youtube.com/watch?v=syV2LkGpQB0

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Frequent Contributor

Re: Men are Stocks Women are Bonds

       


@51hh wrote:

@steelpony10 : A fine example/inspiration for many to follow.

         51hh -  Dumb luck. Nice sentiment though. Thanks.

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