Do man invest in more manly stocks

## Manliness and Investing: The Impact of Gender Stereotypes on Stock Selection

Investing is a complex and multifaceted activity that is influenced by a wide range of factors, including both rational and emotional considerations. One factor that has been shown to have an impact on investment decisions is gender. Specifically, research has suggested that men and women tend to invest differently, with men often adopting a more aggressive and testosterone-driven approach. This has led to the popular notion that men should invest in more “manly” stocks, such as those in the technology, energy, and defense sectors. However, the validity of this assumption is questionable. This article will explore the evidence behind the claim that men should invest in more manly stocks and will provide alternative investment strategies that may be more suitable for both men and women.

**The Testosterone Hypothesis**
The testosterone hypothesis is a theory that suggests that testosterone, a hormone that is typically higher in men than in women, plays a role in investment decisions. According to this theory, testosterone increases risk-taking behavior and aggression, which can lead men to invest in more volatile and speculative stocks. This hypothesis is supported by some research, which has found that men are more likely than women to hold stocks in the technology and biotechnology sectors, which are known for their high volatility and growth potential.

**Evidence Supporting the Testosterone Hypothesis**
There is some evidence to support the testosterone hypothesis. For example, a study by researchers at the University of California, Berkeley found that men who had higher levels of testosterone were more likely to invest in risky assets, such as stocks and options. Another study by researchers at the University of Chicago found that men who were given a testosterone supplement were more inclined to take financial risks.

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**Evidence Challenging the Testosterone Hypothesis**
However, other research has challenged the testosterone hypothesis. For example, a study by researchers at the University of Pennsylvania found that testosterone levels did not predict investment decisions in a sample of male investors. Another study by researchers at the University of Southern California found that women who had higher levels of testosterone were more likely to hold stocks in traditional sectors, such as utilities and consumer goods.

**Other Factors Influencing Investment Decisions**
In addition to testosterone, other factors can influence investment decisions, including:

* **Risk tolerance:** Men and women may have different risk tolerances, with men being more willing to take risks.
* **Financial knowledge:** Men and women may have different levels of financial knowledge and experience, which can influence their investment decisions.
* **Social norms:** Social norms can shape investment decisions, with men being more likely to invest in stocks that are perceived as being masculine.

**Alternative Investment Strategies**
Given the limited evidence supporting the testosterone hypothesis, investors should consider alternative investment strategies that are not based on gender stereotypes. These strategies may include:

* **Diversification:** Diversifying investments across different asset classes and sectors can help to reduce risk and improve returns.
* **Asset allocation:** Asset allocation is the process of dividing an investment portfolio among different asset classes, such as stocks, bonds, and cash. The optimal asset allocation for an individual investor will depend on their risk tolerance and investment goals.
* **Goal-based investing:** Goal-based investing is a strategy that focuses on achieving specific financial goals, such as retirement or education. This type of investing can help individuals to stay on track and avoid making impulsive investment decisions.

While there is some evidence to suggest that testosterone may play a role in investment decisions, this evidence is limited and inconclusive. Investors should not rely on gender stereotypes when making investment decisions. Instead, they should consider their own individual circumstances, including their risk tolerance and financial goals, when making investment decisions.

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