Men's overconfidence and investing

One of the more interesting observed outcomes we see with some men is overconfidence about financial/investment topics. A recent article in the NY Times looked at a study by Vanguard of 2.7 million IRA accounts of men in 2008 and 2009. The study found that men tended to react more to market noise and sold at lows as a result. The men bought high and sold low. These findings mirror a study in 2001 by Schwab that concluded men lose almost one percent per year to such behavior versus women. We don't yet know if the reason is biological or something else. Perhaps we will someday but this reflects some of what we have experienced over the years.