Over the past decade, Barbara Stewart, CFA, has interviewed more than 850 women about money, investing and trading. Stewart publishes a study of financial behavior to show how smart women think and communicate. He started as a currency trader.
He traded USD / CAD and almost every second main currency pair five years at the Central Bank of Montreal before becoming a portfolio manager for high net worth companies. In 2009, he realized that the time had come to change his career. “The calls I had to make at low times generally came from a couple of men, so I started to wonder why we have such ‘women are risk-averse’ stereotypes? My experience shows that women are not risk-averse; it’s their partner.”
This question of risk aversion led to Stewart’s career, which focused on related myths and stereotypes women, finance and money. We talked to Stewart about some of the myths he sees in areas ranging from currency trading to equity investments and what changes them. The following are his observations.
Myth # 1: Women are risk averse
“My research shows that women are not risk averse. They are risk conscious,” says Stewart. They are careful and intuitive, which is really important for a trader. That doesn’t mean they don’t take risks. which is terrible.
Myth # 2: Trading is a man’s job
Reuters article 2018 entitled “Wall Street She wants more women entrepreneurs, but old notions are dying hard, “Jon Regan quoted Sheffield Haworth, a search firm, as saying,” It’s hard to break a trade. He said it hadn’t changed much, although companies were working hard to improve their gender relations.
Stewart points out that access to data is a lever for change. It is now easy to track data to show who is a big manufacturer and who is not. This makes trade an equal opportunity for men and women today, because Stewart says it is the end result. And despite old notions, more and more women are successful as traders.
Myth # 3: Women like financial disclosure
We have experienced a massive cross-sectoral perception that we are more likely to attract women’s financial assets if we communicate with them in their language, Stewart notes. Starling Bank’s advertising with CEO Ann Boden was the best to say. “You’re not bad with money, you’re just with the wrong bank.”
Myth # 4: There is a big difference between men and women holding shares
Historically, about 60% of US men have invested shares only 40% of women. However, this gender gap has narrowed significantly. According to Gallup’s March-April 2020 data, 58% of men and 52% of women own shares.
“So far, there is a convincing post-pandemic trend, in line with my own predictions about the growing popularity of women’s online investment and its impact on closing the retail investment gap,” says Stewart.
He also points out that the funds and ETFs are predominantly managed by men. According to a Morningstar survey of US institutional investors, less than 10% of money managers are women, compared to 37% of doctors, 33% of lawyers and 63% of auditors and accountants. This scarcity hinders women’s investment, as at least some prefer working with other women.
Myth 5: Women are not interested in investing and trading
In fact, women are not interested in the poor communication style of the archaic investment industry, Stewart points out. Her interviews show that most women find the charts and graphs dry and dull. Most say they prefer stories about real people and learn about finances and success through conversations with mentors, role models, families and friends.
He points out This is a trend among young women who raise money, sometimes very informally in Facebook communities, and quickly reach 100,000 members. “It’s been the number one thing that has really changed the idea that women are not as interested in investing as they are. They are so interested in talking about it, learning about it and doing it,” Stewart points out.