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Single women are more inclined to put their money in bonds than others. This fact can influence the distribution of wealth, and therefore it may be important to inform women of about the potential greater long-term gains of stocks, Focus no. 112 argues. This Focus is a summery of the winning paper from the OMX and Danish Stockholders Association’s essay contest. The prize will be presented today at the Danish Stock Fair at Christian the Fourth’s Royal Exchange in Copenhagen.
A fortune nearly four times greater. That is – in a historic perspective – what the aggressive investor, who invests in stocks only, acquire from an investment in the course of 40 years compared to the most careful, who prefers bonds only.
To be more exact the annual gain of a broad selection of Danish stocks from 1924-2006 on average been 14.5 per cent. The corresponding number for a broad selection of bonds from the same period is 11 per cent. A difference which for DKK 10,000 invested over 40 years amounts to end fortunes of DKK 2,250,191 and 650,009 respectively.
Focus no. 112 analyses the effect, the different yields have for pension opportunities for sections of the population – more specifically the investment patterns of men, women and single women. Fixing other variables such as income, age, fortune and children the analysis shows that single women are less inclined to invest in stocks than single men, married men and married women. The effect is not dramatic but statistically significant and thus systematic, and since shares are expected to yield a higher long-term return the conclusion will have implications for the distribution of wealth in the longer term. Hence it may be important to inform women about the greater long-tern potential of shares.
Read the entire article ’Are men more prepared to invest in shares than women’ in Focus no. 112, which is written by Charlotte Christiansen, MSc (Economics), ph.d., Juanna Schröter Joensen, MSc (Economics) and Jesper Rangvid, MSc (Economics), ph.d., at the Copenhagen Stock Exchange’s website www.omxgroup.com/copenhagenstockexchange. Questions to the author may be sent to the e-mail address copenhagen@omxgroup.com until October 2, 2006.
Focus no. 112 is a summery of the winning paper from OMX and the Danish Stockholders Association’s essay contest. The contest’s starting point is the increasing attention the private investor has received within the past 10-15 years, and the main purpose is to uncover the trading and investment behaviour of private investors.
For further information, please contact:
Ellen-Margrethe Soelberg, Communications Manager, Copenhagen Stock Exchange, +45 20 99 83 40
