My dear Friends,
The good news is that during the recent pandemic, there has been an almost 50% rise in the number of women who invest in stocks since 2018.
But, despite the industry´s strides that have been made to make stock market investing accessible to all, women are still not participating at the same levels as men.
In fact, a majority still rather hold cash than invest in the stock market. This is despite the fact that those who do invest generally outperform men.
To me, this does not really make sense and raises the question of why women have a trust issue with the stock market.
The Untold Story
We are all aware that investing was, or better still is – a man´s game. Men still dominate the industry and use a seemingly coded language. So, many women see the financial industry as the proverbial old boys club. Honestly, which woman wants to join a place like this out of her own free will?
Few women were welcome in the world of money and finance. They were excluded from this world—passively and actively.
But just because women have been largely excluded from the investing profession and the financial industry didn’t mean they were not investing. They often proved to be savvy wealth-builders with excellent investing skills.
The Trailblazers
To play the market, women had to pay hefty commissions to men who would invest on their behalf. by the late 19th century, women began opening their own brokerages, some serving women only. Thus avoiding the fees for the middleman. Nineteenth-century feminists Victoria Woodhull and Mary Gage became the first woman stockbrokers. Actually, 40 years before, they had the right to vote.
“She better than he knows the relative crush of customers at the five-and-ten-cent stores, in the various chain grocery and drug stores whose stocks are offered on the market,”
Eunice Fuller Barnard, from “Ladies of the Ticker”
In 1870, Woodhull and her sister Tennesee opened the first women-owned brokerage firm on Wall Street. They made a fortune on Wall Street by advising clients like Cornelius Vanderbilt.
At the time, stockbroking was widely seen as immoral and a form of gambling-even for men. Consequently, the prospect of women doing something so immoral left many enraged. Critics tried everything to discourage people from investing in these exchanges—especially those run by women, claiming that women were emotionally too unstable to handle market fluctuations.
“women could not very well conduct the business without having to mix promiscuously with men on the street, and stop and talk to them in the most public places; and the delicacy of woman would forbid that.”
Virginia Penny, Social reformer, Economist and suffragette, 1826-1913
The first European was Oonah Keogh. On May 4th, 1925, she lodged an application to become a full member of the Dublin Stock Exchange, the first woman ever to do so. Her application was a cause for heated debate among the existing members. In some respects, these discussions mirrored many others taking place at the time regarding the role women should play within Irish society. Despite her father being a stockbroker, the barriers to entry were huge.
Despite the general opinion of the male-dominated financial establishment that there were not enough women with their own incomes to invest, these early pioneers had tapped into an important market.
Family Investment Manager
After all, ever since antiquity, women have often held the role of Family Investment Manager.
Almost 100 years before Woodhull started her brokerage operations, Abigail Adams, the wife of John Adams, the second president of the United States, and the mother of John Quincy Adams, the 6th president of the U.S., was the first woman to invest in government bonds. She quickly gained the reputation of being a female “stock-jobber”.
Back in the early days of stock trading, the wife often knew the stock names better than her spouse. She would read stock tips in tabloid newspapers amongst recipes and patterns. Women also got around more and listened to the latest industry gossip. Another source of information was the radio. Women would listen to company reviews and stockmarket closing prices broadcast on the radio during their “leisure hours” after washing the dinner dishes or while ironing.
“…it was bad enough that there were men who would do that. But women were seen as being purer than men and that they should uphold the purity of the family. They especially shouldn’t be out in the market to make money this way.”
George Robb, Author of “Ladies of the Ticker”
The rest of the world
It took other countries a bit longer to allow and accept women on the stock exchange:
Speed Read
A majority of women rather hold cash than invest in the stock market.
For hundreds of years, few women were welcome in the world of money and finance. They were excluded from these worlds—passively and actively.
In 1870, the first women opened a brokerage firm on Wall Street that was only for women
There are sizable gaps between women and men across the investment landscape. Men are still far more likely to turn to build portfolios and buy stocks
A study found that women frequently underrate their actual financial knowledge
Bear in Mind Men are not stockmarket naturals, either. Women who invest outperform men regularly
The financial industry needs to make the stock markets more attractive and trustworthy for women
Women are masters at holding steady, so the stock market is their place to be
No trust but plenty of success
Throughout history, women‘s exposure to the stock market has been limited, so it is little surprise they have trust issues with stock investments.
However, more recently, triggered by Covid-19 lockdowns, more women turned to investing. Some trading apps have seen a 50% rise in women. Yet, a sizable gap exists between women and men across the investment landscape.
The fact is, men are far more likely to turn to building portfolios and to buying stocks.
The average global ratio is 76 per cent male to 24 per cent female. However, that needs to be viewed in the context of different social policies and a country’s economic success.
Country differences
Generally, countries with high economic success and sophisticated social systems have the largest gender gap when it comes to investing.
In Canada, for example, there is a clear gender gap, with men making up 79% of investors compared to just 21% that are women. A similar gap can be seen in many other countries, including the United States (77/23), the UK (79/21), France (77/23), Germany (80/20), and Australia (78/22).
However, a study found that in some Emerging Markets, like the Philippines, with a ratio of 56/44, followed by Barbados(61/39), Papua New Guinea(62/38), Trinidad(62/38), Jamaica(63/37) and Tobago(62/38) women are very active investors.
“As I have said many times, if it had been Lehman Sisters rather than Lehman Brothers, the world might well look a lot different today.”
Christine Lagarde, President of the European Central Bank
China only comes in 10th in this ranking with 34%(66/34) of women investing. The reason could be that the majority of China‘s population is still poor. Additionally, the Shanghai stock market was only established in 1990, and China‘s state-run capitalism is still in its baby shoes.
However, these countries have one thing in common: a strong legal framework that promotes gender equality in the workforce. Further, women are encouraged to be entrepreneurial and to play a vital part in their country’s economic growth. In these countries, women cannot financially depend on a husband or the state to support them in old age.
The bottom five
At the bottom of the list are countries like Pakistan (15%) and Bangladesh (12%), with Saudi Arabia and Brazil also among the lowest. These countries share key similarities. In highly patriarchal societies, male guardianship laws prevent women from accessing their own money, making financial independence nearly impossible. As a result, many women shy away from financial matters altogether.
Inheritance customs further reinforce this divide. Since men are typically the primary heirs, they bear the financial responsibility for the women in their families. This tradition limits women’s financial involvement and keeps wealth concentrated in male hands, perpetuating the cycle of dependence.
What History’s Trailblazers Got Right
Not every woman can be an Abigail Adams or a Victoria Woodhull—but let’s be honest, we don’t need to be. Studies show that, on average, women are actually better investors than men, earning 0.4% more annually. Sure, 0.4% might sound like pocket change, but over time, it stacks up big time. So, what’s our secret? It turns out the same smart strategies that worked for history’s financial pioneers still apply today.
1. Keeping Cool Under Pressure
Savvy Savers, Reluctant Investors
Women have always been money-smart, stretching every dollar, euro, or rupee like pros. History proves it—we’re natural savers and sharp business minds, even when society has thrown obstacles in our way. In many developing economies, women master the art of frugality, cutting unnecessary costs and tucking away whatever they can
But here’s the twist: while women are brilliant at saving, many hesitate when it comes to investing. Despite the fact that stocks outperform every other asset class over time, only a small percentage of women take the plunge into the stock market or mutual funds. And the real shocker? Even among financially literate women, a whopping 33% still hand over financial decision-making to a spouse or male wealth manager
Literacy vs Confidence
Women tend to side-eye the stock market and anything that smells like wealth-building. But here’s the thing—it’s not just about financial know-how. Sure, gaps in financial literacy play a role, but that’s only part of the story.
“A lack of confidence can lead to considerable differences in financial behaviour and wealth accumulation. Therefore, women should both invest in their financial literacy and have more confidence in their own knowledge,”
Tabea Bucher-Koenen, Professor, ZEW Research Department
Studies show that while two-thirds of the gender investing gap can be chalked up to differences in financial knowledge, the other one-third comes down to self-doubt. In other words, even when women know their stuff, many still second-guess their ability to make smart financial decisions. It’s not a lack of skill—it’s a lack of confidence.
Mindset Matters
Women have been kept away from financial dealings and wheeling for centuries. So, it is not surprising that women neither swim like fish in the water nor trust their abilities to make the right decision regarding investing. Our DNA and mindset have been programmed that way for hundreds of years.
Yet women can and need to re-program themselves and tame their fear of the stock market. Truly, it is as simple as talking more about money and looking behind the scenes at the economic news a bit more, just like men have done for centuries.
Most importantly, women need to shift their mindset and shed the idea that men, by divine inspiration, know more about finances than were do.
Believe me, men are not natural, either. However, what is far more important is that if women invest, they outperform men regularly.
Welcome to the Stock Market Rollercoaster
Let’s be real—markets can be wild. They go up, they go down, they do things that make zero sense. And because women value stability, it’s no surprise we sometimes feel uneasy watching all that chaos unfold.
Volatility
Take COVID-19, for example. The stock market crashed hard when the pandemic hit, only to skyrocket over the next two years. Sounds illogical, right? The economy slowed, but investors bet on a brighter future—and they were right. Then came the Ukraine war, interest rate hikes, and another downward spiral. Inflation fears, sanctions, soaring energy prices—it was a lot. And just when everyone expected things to get worse, the market rallied again. Why? Some say retail investors and meme stocks; others claim interest rates won’t rise anymore. Or maybe it’s just another guessing game.
Will the market drop again? Probably. Will it go back up? Eventually, the truth is that nobody has a crystal ball. Market volatility simply reflects global uncertainty, and we live in uncertain times. So, should we panic? Nope. There is a super simple solution: We need to understand the game.
Memestocks
Then there’s the whole meme stock madness—as if the stock market wasn’t unpredictable enough. Take GameStop, the stock that soared 1,800% in a month before crashing just as fast. Why? A bunch of retail investors on Reddit took on hedge funds, trading platforms like Robinhood panicked, halted trading, and—boom—the stock price collapsed to $98.
“A new generation turned the act of investing into a mass movement,”
Vlad Tenev, CEO and Founder of Robinhood
Did it take down Wall Street? Not really. Did it burn a lot of investors? Absolutely—retail traders, hedge funds, everyone lost big. And the whole saga? Well, it didn’t exactly build trust in the stock market.
Scary players
If meme stocks weren’t enough, SPACs entered the scene—basically, the stock market’s version of a blind date. A SPAC (Special Purpose Acquisition Company) is a listed shell company that exists purely to buy another company and take it public. Sounds a bit sketchy, right? That’s because it kind of is.
Unlike traditional companies with real products and revenue, SPACs are just an idea, and investors are betting on who-knows-what. Personally, I’d rather own shares in an actual business with solid fundamentals. But hey, if investing in a mystery box excites you, SPACs might be your thing.
Genius or Just CHaos
Crypto and NFTs—one minute, they’re the future of finance, the next, they’re imploding in a scandal. Right now, the crypto market is its own worst enemy, making headlines for all the wrong reasons.
Don’t get me wrong—blockchain technology is brilliant, and it will likely shape the future of finance. But until proper regulations are in place, investing in crypto is not for the faint of heart. If you’re not a crypto expert or a blockchain whiz, maybe don’t throw your life savings into it just yet.
But despite all the “crypto winter” headlines and plenty of crypto doom and gloom, many players in that segment keep their heads up. To be honest, so far, it did pay off for some. Look at a currency like Bitcoin is doing well despite the crypto market having a number of black sheep.
That said, Bitcoin is still standing strong despite the doom and gloom. But remember—investing based on FOMO, hype, or some self-proclaimed “guru” on the internet is rarely a smart move. Rule of thumb? Only invest in what you actually understand.
Media hype and reality
I get it—right now, the market doesn’t look reassuring. There are still too many loopholes, especially in crypto, and regulations vary wildly. The EU has stricter rules than the US, while emerging markets do not so much. So yes, better investor protection would absolutely help build trust—especially among women.
But here’s the thing: the wild stories we hear or read about are exceptions, not rules. The stock market runs on clear fundamentals and regulations. It’s just that boring, steady investing doesn’t make headlines—and that’s a shame because boring is good when it comes to investing.
At the end of the day, we are responsible for making informed decisions. If you suffer from chronic FOMO, maybe sit this one out. Investing based on hype, hearsay, or blind trust in a “finance bro” on YouTube? Not a great strategy. Stick to what you know, take your time, and trust that smart investing is a marathon, not a sprint.
A troubled relationship
As we try to understand what happened in the meme-stock frenzy, the cryptocurrency hype, or with SPACS and extreme market volatilities — one thing is clear: None of the previously mentioned helps to boost women‘s trust in the stock market. The good news is that the financial industry is taking steps to make the industry more trustworthy to women:
- More women as senior advisors or senior wealth managers
- More women as brokers, traders or CEOs of stockmarkets
- Supplying more detailed information about companies and their stocks
- Providing far more investment products to meet women‘s requirements. Like ESG, gender equality, education, environment, health etc.
- To curb volatility, regulators should reduce the attractiveness of high-speed trading.
- The markets need to be more transparent; for example, they need to force hedge funds to disclose short-selling positions.
- Online brokerages need to disclose better how they earn their trade and where(how) they earn their money—especially those offering zero commission tradings.
But whatever the financial industry will do, there is one major player who has the ability to close the investing gap- the women themselves. Women need to educate themselves better to build confidence. Most importantly, it is high time that women control their financial futures better. Deferring financial planning to men is not a sustainable solution.
More Women for the Stock Market
Let’s get one thing straight—investing isn’t for thrill-seekers chasing the next adrenaline rush. The stock market isn’t some casino for the dopamine-hungry; it’s a powerful tool to build long-term wealth and financial security. And guess what? Women are already great at it—so why aren’t more of us in the game?
It’s time to ditch the stock market scepticism. No, it’s not some dark art or elaborate scam—it’s an ally and one that works in our favour if we play it right. Sure, markets have their drama queen moments, but history proves that staying steady pays off.
History has shown that women are masters in this game. We persevere, hold steady, and ride out the storms—superpowers that make us natural investors.
Do you really think parking your money in a savings account is “playing it safe”? Think again. In times of high inflation, it’s actually shrinking by the day. Investing in stocks, bonds, or even newer products might feel riskier, but it is actually not. On the contrary, it’s the most intelligent move in the long run. Bear in mind that the average stock market earnings over the last 10 years was at 11% year-to-year.
So, let’s claim our space. The stock market needs more women who invest, influence, and shake things up. And the best part? The more we invest, the more power we have to change the game.
