It turns out that morning testosterone levels in male stock traders have a direct relation to risk aversion and profitability. Susan Pinker, the author of Sexual Paradox, describes the study done by John Coates, that shows a direct relationship between elevated testosterone levels in male traders in the morning and increased profits and risk aversion. That begs the obvious question. If you extend that testosterone effect across a firm, say Leahman Brothers, and then across the industry, which is primarily male dominated, does it lead to increased industry-wide "irrational exuberance" over time and unwarranted risk-taking, which culminates in a boom and an eventual bust? Women traders are more risk averse and cautious.
The TV commentatoror asked Pinker, if it would have been better if Leahman Brothers were Leahman Sisters. No, said Pinker. Women in senior positions in regulatory agencies would have been a better safeguard, concludes Pinker.
Walter Derzko, Smart Economy, Toronto,
Author of the soon-to-be-released book: Hard Times Golden Opportunities.. about opportunity recognition in a recession/ depression features 45 opportunity scenarios.
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