Rekenthaler Report

How Personalities Determine Investment Styles

John Rekenthaler

Test Subjects
On my desk is a paper that purports to show how investment preferences are correlated with personality. This being 2017 rather than the Reagan years, the paper doesn’t explain that rock-climbers like stocks, while librarians favor bonds. Arguments that physical risk-takers prefer equities have come and gone (and have largely been discredited.) This effort, instead, involves investment styles, and bears a title that only a professor could love: Personality Traits and Portfolio Tilts Toward Value and Size.

All right, two professors—the authors being the duo of Andrew Conlin and Jouko Miettunen, from Finland’s University of Oulu. (A cold place that; the average January high is -8 degrees Celsius, which doesn’t sound a whole lot better when expressed in Fahrenheit.)

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