Women tend to be 'risk-appropriate' investors, expert says: How that helps them in volatile markets
Women are often labeled as risk-averse investors, but experts argue they are instead 'risk-appropriate,' favoring long-term, stable strategies that perform well in volatile markets. Research shows women tend to outperform men in investing by maintaining consistent portfolio allocations and avoiding frequent trading. This disciplined, cautious approach prioritizes financial security over short-term risks. Experts emphasize that women's investing behavior is often misunderstood, with misconceptions about emotionality not supported by evidence.
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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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