Many women want to ensure their investments meet their goals – specifically taking care of themselves, their kids, and potentially their aging parents.damircudic/iStockPhoto / Getty Images
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As a new immigrant to Canada, Vrunda Bhatt feels a strong need to save and invest her money for her future – and to be in control of her finances.
Since arriving from India three years ago, Ms. Bhatt, 29, has invested about $6,000 with an online brokerage, which lets her invest in stocks she chooses – particularly technology stocks such as Microsoft Corp. MSFT-Q, India’s Infosys Ltd. INFY-N, Facebook known as Meta Platforms Inc. FB-Q and Tesla Inc. TSLA-Q
“I love that control,” says Ms. Bhatt, who works with an immigration settlement agency and is also a freelance journalist.
Her father-in-law is a financial advisor in India and advises her and her husband to invest in the stock market. Based on his advice, her minimum time horizon for any investment is five years, she says.
“I’m not greedy that way,” she explains. “I assume that this money doesn’t belong to me at this stage, even if I really want to buy a house and everything.”
She keeps in mind her father-in-law’s advice to only invest in blue-chip companies.
“I don’t do trading [or] investing randomly – but my husband does it. I don’t know why. I personally don’t prefer that.”
That divide between how women and men invest can result in a notable difference in performance, research shows.
A 2021 U.S. study by Fidelity Investments found that more than two-thirds (67 per cent) of women are investing outside of retirement and they’re doing it well – women outperformed men by 0.4 per cent.
The study also found that women are broadening the asset classes they’re investing in, including stocks, bonds, sustainable investments and cryptocurrencies.
More women are also taking steps to learn more about investing, particularly to reach specific goals, how to evaluate their current investments, and learn about cryptocurrencies.
“[Some] men are looking for the next bitcoin that’s going to make them taller, bigger, faster, richer very quickly,” says Elke Rubach, principal of Rubach Wealth Holistic Family Advisors in Toronto. “It doesn’t work like that.”
She says women can be shy about asking questions about investing but all clients should ask those questions.
“It’s not a dumb question. It’s dumb if you don’t ask it. At the end of the day, it’s going to affect you,” she says.
Ms. Rubach starts by talking with women about their goals and then “reverse engineers” their portfolios to meet those targets. “They’re willing to learn,” she adds. Many women are interested in equities in the real estate, retail and health care sectors, and focus on blue-chip stocks.
Women focus on goals, planning advice
Trixie Rowein, portfolio manager and vice president, private client group with the Pax Portfolio Advisory Team at Raymond James Ltd. in Edmonton, says many women she advises want to ensure their investments meet their goals – specifically taking care of themselves, their kids, and potentially their aging parents.
“They’re really looking for guidance on investment, retirement and estate planning,” she says, adding they want help setting up a solid investment plan that includes blue-chip stocks that will be resilient in the face of market volatility.
Others, such as her business news obsessed 96-year-old client, like to call and choose stocks – her latest pick was West Fraser Timber Co. Ltd. WFG-T. Some clients have also been asking about silver and gold investments as inflation and interest rates rise.
One reason women’s portfolios do better than some men’s is that they’re too busy to check their investments constantly. They rely on a trusted advisor and have the comfort and knowledge that the plan they’ve put in place is on track, Ms. Rowein says.
Although women are interested in environmental, social and governance (ESG) investing, “they’re more focused on the environmental footprint” of a company, she adds.
Women are also interested in the reopening trade – choosing stocks that may benefit as the economy reopens after the pandemic lockdowns such as airlines including Air Canada AC-T, restaurants, or cruise lines such as Carnival Cruise Line CCL-N.
Education is key to helping women invest
Women often prefer to invest in companies they know well and that make the products they use, Ms. Rowein says, adding it’s her role to educate female clients.
“We are going to live longer. A lot of us are going to be alone either by choice – we chose not to get married or got divorced – and some will become widows and responsible for their finances,” she says. “Of course, a time of grief is not the time to learn.”
Michelle Hung, author of The Sassy Investor and a financial planner, says many women know they need to invest, but they don’t know where to start.
“They just want security and some sort of nest egg, something to fall back on,” she says.
Her strategy to help educate women is starting with a basic portfolio of exchange-traded funds. Then she helps them invest in areas of interest like cryptocurrency or industries they know or want to support such as health or wellness, food, or environmental technology.
“When you learn and understand it, you become more interested in it,” she adds.
While Ms. Bhatt is fairly new to investing in the stock market, she finds it exciting to research stocks and invest based on her “gut” instincts. She used to check her portfolio daily but cut back as she found she was “addicted” to it.
She tries to keep her focus on the long term. Facebook has fallen since she bought the stock, but she expects the company will be able to turn its stock price around.
“Keeping your calm is very important, and that’s what I have learned,” Ms. Bhatt adds.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
