In most parts, ultimately it is the financial literacy of the individual and the environment in which allows someone to gain experience and knowledge regarding investments to gain favourable gains.
Imagine someone in the low IQ who comes from a poor financial background, that individual would be struggling to make ends meet, don't even mention investing. If investing, it would most likely be a form of gambling given the lack of financial literacy.
However, an individual with a low IQ that comes from a rich background may not know much but assuming that the family background is well versed in investing, that individual may still stand a chance to do well as the individual is being exposed to such elements and upbringing.
Hence, I personally feel its not too big of a topic to debate about and there are many other topics that will be more productive for discussion [Happy]
//@Tiger_comments:The relationship between IQ and yearly returns in the stock market is a subject of ongoing debate among investors.
low IQ loses 100%: they don't know any better choices
middle range IQ earns 10%: buy and hold $SPDR S&P 500 ETF Trust(SPY)$
high IQ loses 700%: incredibly sophisticated and intricate strategy that turns out to be stupid
Some argue that individuals with IQs in the middle range tend to fare well, with the capacity to make reasonable returns through relatively straightforward strategies like buying and holding an index fund such as $SPDR S&P 500 ETF Trust(SPY)$.
Conversely, individuals with exceptionally high IQs may struggle in the stock market. These investors might overcomplicate their strategies, leading to losses that can be substantial.
Those with lower IQs are seen as being particularly vulnerable to substantial losses because they may lack the knowledge to make informed decisions, potentially losing their entire investment capital.
Do you agree with this meme?
Do you think IQ and returns have certain relationship?
Which type of investors are you?
What kind of investment strategy do you use?
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