Compared to their peers, doctors have a relatively short earning career due to all their years spent in medical school and training. As such, they may feel the need to play catch up with their net worth, which can lead to poor investment choices.
Physicians also need to consider any conflicts of interest in their investments. Many of the recognizable stocks and index funds follow healthcare and pharmaceutical trends.
Physicians have an ethical responsibility to disclose any potential conflicts of interest to their patients, such as investing in the manufacturers of the drugs they prescribe.
Doctors may also be privy to confidential information not available to the general public, which may open them up to insider trading concerns.