More Women Need To Invest In Stocks
Why aren’t more women investing in stocks today? Especially, since history has proven that stocks have outperformed every other investment! Stocks long-term have beat the returns on cash investments, bonds and real estate. And, yet many women tend to be shun stocks and put their money in these investments! This can be a mistake. Why settle for low returns on your money when you can do so much better investing in stocks?
A recent Wall Street Journal article, entitled “Women Investors Are Bucking Stocks” states: “Women’s cautious view of equities is a problem for female investors and the rest of the finance world.” The article further states: “Less than one-quarter of deposits into U.S. brokerage accounts were made by women in January 2021 according to consumer-spending data analytics firm Cardify.
Why Are Many Women Settling For “Less” On Their Earnings?
For instance, there aren’t any banks today that offer the high returns stocks can offer! Women may earn 1% interest, for example, on a savings or a money market account! Stocks, on the other hand, can offer women investors double-digit returns!
A 2018 Women and Investing Study states: “With more than half of women (56 percent) still not investing, and leaving nearly all of their savings in cash or bank accounts – which on average earn less than a one percent return – many may be missing out on thousands of dollars in potential earnings.”
Why Are Women Hesitant To Invest In Stocks?
Research has shown that women are hesitant to learn and invest in stocks. Why is this? Women are smart with money! Many women are the major shoppers in their households and are in charge of their family’s budgets! And as Shelley Zalis, CEO of the Female Quotient, previously told Fast Company‘s Lydia Dishman, “women influence more than 85% of all purchasing decisions.” This alone gives women an upper edge!
Could a lack of confidence in their financial skills be keeping women in cash investments and away from stocks? Some studies point to this as a reason that more women aren’t investing in stocks. Improving their investment knowledge is one way for women to gain more confidence. Moreover, replacing fear with confidence when investing helps women feel surer of their investing decisions.
Studies have shown that the fear of risk could be another factor preventing women from entering the stock market. Women should not deny themselves the higher returns that stocks can offer, in the long-term, due to the risk factor! It’s ironic but the biggest risk for women is not investing in stocks at all! This could prove costly over the long-term! Learning how to manage risk, and making “educated” stock picks, can narrow a woman’s risk! Be sure and read my article: “How To Reduce Your Risks When Investing In Stocks.”
Get Started Investing Young:
It is never too late for women to learn how to invest in stocks! When women start investing young, they will have a huge advantage! There is money to be made investing long-term in a strong company with good fundamentals.
A huge advantage of starting young is earning compound interest! Compound interest is computed on your initial principal and also on the accumulated interest of prior periods. This really gives your money, long term, a chance to grow! However, even if you are a woman in your 50’s or 60’s etc….you should still be investing in stocks to obtain maximum returns on your monies.
Warren Buffett Invests Like A Girl:
I read a book: “Warren Buffet Invests Like A Girl” (And Why You Should Too) written by Louann Lofton. I strongly recommend this book to all women! Buffett is considered to be the best investor in the world. He is a long-term investor and very patient with his stock picks.
Moreover, studies have shown that women possess some of Buffett’s superb investment qualities. Women are more likely to exercise patience, invest long-term, and educate themselves before investing. Most women research a company thoroughly before purchasing its’ stock. Studies have also demonstrated that women make “excellent” stock investors and, in fact, outperform male investors!
Investing In Stocks Should Be A Financial Priority:
For those women just getting started investing there are hundreds of books on money and investing! Women, no matter how busy they are, should make the time to learn how to invest in stocks. This should be one of their financial priorities! Preparing for their financial future is time well spent!
Moreover, there are “online” financial websites to help guide women on their investment journey. Google and Yahoo Finance are great websites for researching a company’s stocks. Do not let a lack of knowledge prevent you from earning higher returns on your money! Be sure to check out my many investing articles @lindasstocks.com to help get you started.
In conclusion, there are not enough women investing in stocks today! Studies have shown that one reason for this may be fear of the risk involved. However, smart women will manage this risk by doing the necessary homework before purchasing their stocks. Some studies have suggested that a lack of confidence could be another factor preventing women from investing in the stock market. This could be due to lack of knowledge. It’s important for women to educate themselves before investing.
Women naturally possess many of the attributes needed to invest “successfully” in the stock market! So, what are we waiting for ladies? Learn how to invest and get started investing in stocks today!
As a final note, I have had great success investing in stocks! I have managed, over the long-term, to earn high double-digit returns in my portfolio. I do not know of any better way for women to grow their wealth! And, I wish to share my investing knowledge with other women so, that they, too, can invest in stocks long-term and watch their money grow!
Hi Linda, You have a great website and great goal. I started my blog in 2017. It is growing slowly and I am fortunate to have many people who leave comments. Some women, but most of them are men I think. Which is fine. I would love to attract more women to site to learn about Dividend Growth Stock Investing. I don’t have the solution and I don’t market directly to women. Just thinking out loud here since stocks are an equal opportunity endeavor, they don’t care who buys them! Good luck. Tom
Thank you Tom! You are right…most are men. Women should be educated when it comes to dividend paying stocks also. The best of both worlds: Capital Appreciation and a Good Dividend paying company!