New report urges us to find out investment animal
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The traditional investor styles of bulls and bears may be dying out to be replaced by something new.
A survey of investors by Ally Invest finds that there is an emerging band of “spirit animals” among investors and we may actually be more akin to emus or prairie dogs.
"Investing styles are more nuanced now than ever before, and this survey data not only identifies 10 different patterns and styles of investing, it also breaks down how investing trends differ based on age group and investing experience," said Rich Hagen, president of Ally Invest.
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The survey suggests that most people (34%) are emus – burying their head in the sand with not enough investments to have a defined style.
Prairie dogs (17%) are those who believe in a balanced, diversified investment portfolio to achieve consistent results and like to play it safe with low-risk investments or ETFs.
Mason bees (16%) are always looking to the future; and having a financial cushion.
Mules (14%) are the cautious investors who won’t back unproven stocks.
Owls (13%) do their research to ensure they know the markets they want to invest in.
Narwhals (8%) doesn’t know much about investing and therefore has no set style.
Finally, 6% are Sasquatch because they generally pop up randomly and unexpectedly.
"Knowledge is power, and this information can help consumers become more aware of what their investing traits are, and in doing so, perhaps break out of their pattern to improve their financial picture," concluded Hagen.
