Would men and women manage a windfall differently?

Our study explores how each gender would advise handling investing a sudden big financial gain

Morningstar 21 June, 2019 | 1:21AM

Couple on a cliff

Financial-behavior studies frequently suggest a difference between the behavior of women versus men. For example, studies like Odean’s and Barber’s “Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment” found that men’s tendency toward overconfidence bias prompts them to trade more excessively than women, resulting in lost returns. On the other hand, studiesconcerning women’s financial behavior often find that women tend to be more risk-averse and take on more conservative investments, sometimes to their own detriment. 

Our research suggests that these faux pas in financial behavior are not a result of lack of knowledge. Rather, many studies have found that investors tend to make the biggest financial mistakes in situations where emotions are running high. But in a low-pressure scenario, both men and women choose fairly optimal investing decisions. 

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Morningstar

Morningstar  Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 17 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets.