Men and women investors many differ in many ways, but both groups favor technology stocks over all other industry sectors.
Investors from both Mars and Venus like technology stocks best, but men appear more bullish on stocks in general, according to the latest research from Millionaire Corner.
Both men and women investors rank the health care sector as a close second in preference, and the pharmaceutical industry as third, according to a our fourth quarter studies of financial product usage among individuals with investable assets ranging from $100,000 up to $25 million.
While men and women both rank technology stocks, health care and pharmaceuticals as their first, second and third choices, men are more likely than women to invest in stocks. Nearly 70 percent of ultra high net worth men, compared to 50 percent of ultra high net worth women, say they are likely to invest in stocks in the next 12 months. Men prefer stocks to all other types of investments, while women – at 56 percent – say they are most likely to invest in bank CDs, money market funds, Treasury bills and other cash products in 2012.
The communications sector ranks fourth in preference among both men and women, while the real estate ranks fifth among all but the wealthiest men, who show a slight preference for the manufacturing sector.
The Mars/Venus divide is most narrow among men and women who fall into the ultra high net worth category, defined as investors with $5 million to $25 million, not including primary residence. In fact, high net worth women are slightly keener than high net worth men to invest in technology stocks and the pharmaceutical sector, and are almost as interested as high net worth men in the health care sector.
Ultra high net worth men are more interested in the construction, financial service, manufacturing and transportation sectors than ultra high net worth women. Non-millionaire men and women show an equal interest in the communications and construction sectors, but are farther apart than millionaires on health care, pharmaceuticals and technology stocks.
A preference for stocks across most industry sectors reflects the tendency of men to be more aggressive investors than women. Nearly 29 percent of affluent male investors surveyed in February described themselves as “most aggressive” or “aggressive” investors, compared to less than 15 percent of the women.
Millionaire men also report a higher level of interest in alternative investments, such as hedge funds, private equity funds and Real Estate Investment Trusts or REITs. Millionaire men also express a significantly higher level of interest in international investments than do millionaire women, but when it comes to U.S. equities technology stocks remain the favorite of both men and women investors.