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Larry Swedroe: Investing Habits Affected By Genetics
I'm sure genetics is indeed a factor in our investing philosophy and decision making. It partially explains our risk profile. The referenced article concludes that it controls like 45% of our investing decisions, although we can do things to modify that predisposition.
But that study was based upon Swedish folks. Why them? It is not a far reach to suspect that we are substantially different in the way we assess investment risks and rewards. The Swedes are far more willing to submit to government control and mandates; their higher tax schedules are acceptable by their standards. Their long dark hours and days must influence their perspectives in negative ways. General optimism levels must differ.
A genetic study of the nature reported in the referenced work would be much more meaningful and trustworthy if it were conducted in the USA.
Comments
I'm sure genetics is indeed a factor in our investing philosophy and decision making. It partially explains our risk profile. The referenced article concludes that it controls like 45% of our investing decisions, although we can do things to modify that predisposition.
But that study was based upon Swedish folks. Why them? It is not a far reach to suspect that we are substantially different in the way we assess investment risks and rewards. The Swedes are far more willing to submit to government control and mandates; their higher tax schedules are acceptable by their standards. Their long dark hours and days must influence their perspectives in negative ways. General optimism levels must differ.
A genetic study of the nature reported in the referenced work would be much more meaningful and trustworthy if it were conducted in the USA.
Best Wishes