woman investorPrompted by a new study, this week we revisit the question of whether women are better investors. There's some empirical evidence they are, and some indications we ain't seen nothing yet. Look no further than the 2011 Hedge Fund Rising Stars. The girl power investment trend seems inevitable. In a thoughtful Wall Street Journal piece Jason Zweig suggests couples manage their portfolios together.

Behavioral economics is fascinating and women may have an edge. As duly noted by Hilary Kramer, women instinctively notice things like which parking lots are most full -- one of the earliest sales indicators you can spot. No need to wait for same-store sales numbers to be tallied and reported. But the other reasons for suggesting women are better equipped to make a profit in the markets seem like back-handed compliments, among them:

Women are more risk adverse: Guys pride themselves on going for it and "killing it." While people say they want their risk managed, as one longtime female player in the market told me, "everyone secretly yearns for the extreme highs." That being said, "risk aversion" is applauded but not truly revered, and may signal lack of confidence.


Women exhibit self control:
You can never go wrong with self control, and apparently lack of financial overconfidence can prove advantageous too. Why women exhibit this trait is debatable. Fear of failure is a pretty powerful motivator. In the meantime, we get credit for buying less, and not panicking and selling too fast. Men think they trade too much. Academics agree that they probably do in an attempt to beat the average.

Women age particularly well: Move over, youth-chasers. Mellowing with age has a positive material effect. We're more calm, have a higher degree of acceptance, and are generally more satisfied. The best characteristics of female investors seem to be accentuated over time.

At the end of the day, though, we're all human beings. Greg Davies, head of Behavioral and Quantitative Finance for Barclays Wealth sums it up this way, "Classical finance does not take into account the emotions involved in decision making. It assumes we are all rational, but we aren't."

Ah, rational thinking for rational portfolios. Get there if you can.

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madddddddddddddd

OK.I ADMIT THEY R,,,,,,,,,,,,,,CAN I GO WATCH THE GAME NOW......????
MARRY SMART GALS.........OR WISH U HAD MAn.....................

gals r whaT MAKES THE WORLD GO ROUND.............. I LOVE THEM,,MY MOM AND SISTERS WERE GIRLS AND MY AUNTS TOOOOOOOOOOOOOOOOO..........

I ALSO CLEAN TOILETS ETC,,THE ARMY MADE ME GOOD AT THAT................THE ARMY MADE ME GOOD AT KICING ASS TOO...,

June 23 2011 at 4:39 PM Report abuse rate up rate down Reply
Condley

One reason is because they took all the money in the divorce and their ex doesn't have a dime to invest!

June 20 2011 at 10:58 PM Report abuse +1 rate up rate down Reply
zzyxx

when in the name of god will people see that women are better in absolutely everything in life?...............get a grip people...they will rule the world and we will all be wearing pant suits and shopping till we drop, eating rice cakes and asking is we have gained weight.

June 20 2011 at 10:54 PM Report abuse rate up rate down Reply
Larry

Rule of Thumb: Show me a woman with a billion dollars and I'll show you
the wife or daughter of a very rich dead man.

June 20 2011 at 10:30 PM Report abuse rate up rate down Reply
savemycountry911

No steriotyping here. LOL

June 20 2011 at 10:19 PM Report abuse rate up rate down Reply
composerr

What a Crock!!!!

No, No, Women are not better Investors. There might be a few that are good, but most don't have a clue what
is going on and are swept up by smooth talkers who promise big things that they can't deliver. If it sounds good,
to women, OK thats a GO.

Men equate dollars to the hard work they have to do to earn them, and thus don't want to lose them either, so
they are more likely to look at the facts of an investment rather then get carried away by the sizzle. So here is
warning to the ladies. Never mind how good he talks(Obama talked good too, but could not deliver)read the
financials, and what the Company's probabilities are in the future, and forget about all this easy money talk.

An Army Combat Veteran

June 20 2011 at 9:25 PM Report abuse rate up rate down Reply
Rhonda

Hedge funds are the instrument of the devil. How to steal money from others in a short period of time.
It makes sense that a woman would write about how wonderful it is that her peers no longer have scrupples and have entered into this horrible field. And for rp5599, no one group is better at everything, just look at the world records.

June 20 2011 at 6:16 PM Report abuse rate up rate down Reply
toosmart4u

Someone is giving our women some credit. Unlike the republican controlled supreme court and the republican machine once again show that they are not on the working women side. The supreme court threw out a one women law suit against that tire company in Ohio and now the supreme court throws out a class action law suit. The bottom line is that women cannot sue under any conditions for equal pay to men. Shameful. This is what you get when you vote republican.

June 20 2011 at 5:01 PM Report abuse rate up rate down Reply
knewmanhd

Most of the modern luxuries were invented by men. The infrastructure of our country was built by men. How long could our systen continue to function if the stupid males quit working tomorrow? It seems to me that there are very few women on the crews that rebuild the electric system after hurricanes or tornadoes. Men need women and women need men. Can't we all just get along?

June 20 2011 at 3:49 PM Report abuse +1 rate up rate down Reply
rp5599

WOMEN ARE BETTER EVERYTHING !!!!!

June 20 2011 at 3:39 PM Report abuse -2 rate up rate down Reply