Why single people make risky investments

Some think it’ll make them more desirable

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From the Summer 2016 issue of the magazine.

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risky investments

If your love life is taking a beating, be extra careful your investments aren’t doing the same. It seems that people who strike out at dating alter their everyday forms of decision making—and this even impacts their portfolios’ asset allocations, according to a study by the University of Michigan’s Dr. Joshua Ackerman. Participants with unfavourable romantic prospects were found to diversify less and instead concentrated investments in high-risk/return options. When faced with risky business decisions, people typically diversify their choices by allocating funds in several options, Ackerman noted. In other words, they avoid “putting all their eggs in one basket.” But those failing in romance might think that trying to obtain more wealth through risky investments could increase their desirability. Our advice? Leave the portfolio alone and just get out there and mingle!

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