35-year-old men 'lousy' investors: Swedish study
Published: 17 Jan 2012 14:47 GMT+01:00
Updated: 17 Jan 2012 14:47 GMT+01:00
Stock market success is impossible to predict but according to new research, certain ‘crystal clear’ trends have been discovered.
If you think the typical image of a stock-market sensation is a man in his mid-thirties who invests nearly everything into his shares, then you might be in for a shock.
In fact, statistically speaking, the investor who is least likely to succeed is a 35-year-old man who is entirely invested in stocks, ccording to a new report from the Swedish Institute for Financial Research (Institutet för finansforskning).
The report, authored by Anders Anderson, was based on a survey of 11,000 people from 1999 to 2002. More recent information is unavailable due to bank secrecy.
The results also show that the investor who enjoys the greatest financial success on the markets is typically a man aged 43, with investment capital totaling 2.6 million kronor ($375,723).
Other indicators associated with investment success include the possession of a university education and portfolios with higher diversification.
In addition, women appeared more regularly in the groups of most successful investors than in those that suffered investment losses.
Although the world of investment has changed since 2002, thanks to the stock market crash and the spread of computerized trading, Anderson argues that punters’ psychological confidence remains the same.
He believes that those with the greatest confidence in their abilities don’t understand this themselves.
”I think that most are unaware of this. It’s difficult to save money and buy stocks. And it’s hard to get good feedback on your own share transactions,” Anderson told Sveriges Radio (SR).
“It’s clear that many people in this survey should adopt a more passive approach to the stock market.”