Women are Better Investors than Men!

According to a research paper by Brad Barber and Terrance Odean, women make better stock investors than men.

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. 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.

Atleast men are better cooks! [and now I’m running for cover.]

Leave a Reply

Your email address will not be published.