FYI: (This is a follow-up article.)
You wouldn’t do surgery on yourself, so why would you try to manage your own investments? This statement might offend some people. Others would nod in agreement. Most financial advisors are in the nodding camp. Plenty of them bring up Dalbar’s data to convince clients that they can’t invest on their own.
Each year, Dalbar publishes its Quantitative Analysis of Investor Behavior. The study shows how the stock market performed over a period of time, compared to how investors performed in stock market funds. For example, the S&P 500 dropped 4.38 percent in 2018. But according to Dalbar’s research, the average investor in U.S. stock market funds lost 9.42 percent.
Regards,
Ted
https://assetbuilder.com/knowledge-center/articles/are-investors-as-dumb-as-this-study-says
