I am asked on Twitter (follow me on @MerrynSW) by the editors of what looks like it will be a great new magazine (Libertine) what I think about this Wall Street Journal article on female investors.
The basic premise is that female investors aren't the same as male investors. Investing isn't a hobby for them, it is a way to achieve a goal. Therefore if the industry wants to capture them as effectively as it does men, it needs to advertise a "long term goal orientated approach".
Do I agree? I do.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Studies show that women hold more of their wealth in cash than men do; that when they do invest they do so for the long term; that they don't trade often, and practically never spread bet; that they seek out simple investments; and (this is the good news) that as a result, their long term returns are a little higher than those of men.
But I think that the absolutely key point here is the hobby' bit. By the time they have money to invest, most women are in their 30s or 40s. They have jobs, children, houses, fragile parents and partners. They have no time for anything. Ever.
Men very often appear to somehow find the time to spend their evenings at computers thinking about what to buy and sell (racking up the costs as they go). Women, not so much. So if they get around to investing, they need something they can buy and leave.
The WSJ piece looks at what kind of portfolios they should be sold in the US. Here, I reckon there is room for a few big funds to offer themselves up as a one stop shop to busy women.
Something for the board of Alliance Trust (a rarity in that it is a FTSE 250 firm run by a woman) to think about perhaps?
-
Is a mortgage in retirement always a bad idea?A mystery shopper exercise shows high street lenders are “shunning” retirees looking to take out a mortgage. Are they right to do so?
-
Three funds to consider as UK small caps trade at 30% discountUK small caps have been unloved for some time, but a shifting economic environment could give them a boost
-
House prices to crash? Your house may still be making you money, but not for much longerOpinion If you’re relying on your property to fund your pension, you may have to think again. But, says Merryn Somerset Webb, if house prices start to fall there may be a silver lining.
-
Prepare your portfolio for recessionOpinion A recession is looking increasingly likely. Add in a bear market and soaring inflation, and things are going to get very complicated for investors, says Merryn Somerset Webb.
-
Investing for income? Here are six investment trusts to buy nowOpinion For many savers and investors, income is getting hard to find. But it's not impossible to find, says Merryn Somerset Webb. Here, she picks six investment trusts that are currently yielding more than 4%.
-
Stories are great – but investors should stick to realityOpinion Everybody loves a story – and investors are no exception. But it’s easy to get carried away, says Merryn Somerset Webb, and forget the underlying truth of the market.
-
Everything is collapsing at once – here’s what to do about itOpinion Equity and bond markets are crashing, while inflation destroys the value of cash. Merryn Somerset Webb looks at where investors can turn to protect their wealth.
-
ESG investing could end up being a classic mistakeOpinion ESG investing has been embraced with enormous speed and zeal. But think long and hard before buying in, says Merryn Somerset Webb.
-
UK house prices will fall – but not for a few yearsOpinion UK house prices look out of reach for many. But the truth is that British property is surprisingly affordable, says Merryn Somerset Webb. Prices will fall at some point – but not yet.
-
This isn’t the stagflationary 1970s – but neither is it the low-rate world of the 2010sOpinion With soaring energy prices and high inflation, it might seem like we’re on a fast track back to the 1970s. We’re not, says Merryn Somerset Webb. But we’re not going back to the 2010s either.
