Why men are more likely to invest in Tesla MarketWatch 1/16/2021
Your answer may depend on your gender.
A new
academic study has found that male investors are more inclined to pursue momentum strategies, while female investors tend to be more contrarian. The study was conducted by Charles Jones of Columbia Business School, Donghui Shi of the Shanghai Stock Exchange, and Xiaoyan Zhang and Xinran Zhang of Tsinghua University.
The authors reached this conclusion upon being given access to a “comprehensive, account-level database from the Shanghai Stock Exchange with all trading and holdings over the period from 2016 to 2019.”
By “momentum,” the researchers have in mind strategies that buy winners and sell losers. In other words, momentum investors buy stocks that have performed well in the recent past like Tesla in hopes that their good fortune will continue.