Why Women are Better Investors than Men


Regina Lewis, of DailyFinance, states the very same thing about the investment behaviour of women. She cites the example of how a lot of women have made it on the list of ‘2011 Hedge Fund Rising Stars.’ Hilary Kramer says how women are more suited to making profits in the market than men. This is again attributed to the instincts of women.

Jennifer Lerner, of Harvard University, sheds further light on how emotions affect decision-making. Different emotions generate different responses. During emergencies, men react with anger, while women tend to get scared. So, when men get angry, they tend to focus more on achieving certainty and do not care for risks. Women, on the other hand, view adverse conditions with fear and hesitate in taking rash decisions. This trait saves women from making rash investment decisions. Men, however, tend to get over-confident when the markets fare well and take hasty decisions. So, women get cushioned at such times due to their psychology.