No, you did good. How reliable is research where they have a 'typo' like that and then spread it without noticing the claims they're making about the investment abilities of newborns?
The thing is, if you're a woman, you'll always have a safety net. Husband/boyfriend, family, friends, or government. You'll be able to freeload for your entire life. Why wouldn't you take riskier, higher-return bets?
Men actually have to think about the future and plan as if there won't be anybody there to help them. You don't generally bet the farm if you can't afford to lose it.
That said, I'm just assuming that this entire tweet is bullshit. I'd bet that with a decent sample size over a long enough time period, you'd end up with nearly equal numbers across the sexes.
An investment strategy that is as well protected from downturns as it could be will have naturally lower returns. That the worst case scenarios predicted didn't happen doesn't mean those positions were bad. If they had, someone would use this chart to prove how the world of high finance and investment is stacked against poor little women.
Might as well include that savvy financial genius that invested $2 into a winning powerball ticket and won. Wow, 250,000,000% return!
He won't beat "the market" (i.e., index funds), but he will beat actively managed funds (because they charge you for their mismanagement). With sufficient diversity he will equal the market on average.
I think it's absolutely possible that on average women make more from investments than men.
Evolutionary psychology would predict that women on average would take the safest investments. And just putting your money in an index fund and not fucking with it for decades has been basically both the safest, and the best on-average investment most people can make.
Many men in contrast will want to gamble. They'll want to gamble even if their average return is lower, because the potential for great return is only there if you gamble. Men are much more likely to play a high variance game for life in general. This especially shows up more when men are younger, manifesting in the 18-30 group. For example, there were plenty of male crypto millionaires in this age group, while way more NFT and pump-and-dump victims. Women don't gamble their money on this kind of stuff at the same rate men do.
So, just as men make up the majority of the homeless, they will make up the majority of investment losers, but they will also make up the vast majority of successful startup CEOs and longshot investment winners. On average, men can do worse, but still almost all the top investors will be men.
This is only counterintuitive because the loser men are invisible. Which is just the way the world works.
The difference between younger and older investors can be explained entirely in stock/bond investment splits. Almost anyone who invests through a financial advisor, or through vanguard funds, will have the majority invested in stocks when younger (higher variance but higher avg return) while invested in bonds when older (lower variance but lower avg return)
>The best investors are children
>women make the best investors
Really activates the almonds.
Oh, I believe him.
I believe kids between 0 and 10 years old do way better than adults.
No, you did good. How reliable is research where they have a 'typo' like that and then spread it without noticing the claims they're making about the investment abilities of newborns?
Facts made for twitter.
The thing is, if you're a woman, you'll always have a safety net. Husband/boyfriend, family, friends, or government. You'll be able to freeload for your entire life. Why wouldn't you take riskier, higher-return bets?
Men actually have to think about the future and plan as if there won't be anybody there to help them. You don't generally bet the farm if you can't afford to lose it.
That said, I'm just assuming that this entire tweet is bullshit. I'd bet that with a decent sample size over a long enough time period, you'd end up with nearly equal numbers across the sexes.
Yes males may be overwhelmingly prevalent among top investors, but Nancy Pelosi tips the balance entirely on her own.
Cue the woke outcry, we must take better care of our men and close the investment gap!
I'm waiting...
Is your sarcasm detector still under warranty? You might want to take it into the shop.
An investment strategy that is as well protected from downturns as it could be will have naturally lower returns. That the worst case scenarios predicted didn't happen doesn't mean those positions were bad. If they had, someone would use this chart to prove how the world of high finance and investment is stacked against poor little women.
Might as well include that savvy financial genius that invested $2 into a winning powerball ticket and won. Wow, 250,000,000% return!
He won't beat "the market" (i.e., index funds), but he will beat actively managed funds (because they charge you for their mismanagement). With sufficient diversity he will equal the market on average.
Feb 2021 to Feb 2022. Anyone who didn't got out of longs before/at the climax of that period is now holding the bags.
I think it's absolutely possible that on average women make more from investments than men.
Evolutionary psychology would predict that women on average would take the safest investments. And just putting your money in an index fund and not fucking with it for decades has been basically both the safest, and the best on-average investment most people can make.
Many men in contrast will want to gamble. They'll want to gamble even if their average return is lower, because the potential for great return is only there if you gamble. Men are much more likely to play a high variance game for life in general. This especially shows up more when men are younger, manifesting in the 18-30 group. For example, there were plenty of male crypto millionaires in this age group, while way more NFT and pump-and-dump victims. Women don't gamble their money on this kind of stuff at the same rate men do.
So, just as men make up the majority of the homeless, they will make up the majority of investment losers, but they will also make up the vast majority of successful startup CEOs and longshot investment winners. On average, men can do worse, but still almost all the top investors will be men.
This is only counterintuitive because the loser men are invisible. Which is just the way the world works.
The difference between younger and older investors can be explained entirely in stock/bond investment splits. Almost anyone who invests through a financial advisor, or through vanguard funds, will have the majority invested in stocks when younger (higher variance but higher avg return) while invested in bonds when older (lower variance but lower avg return)