Quote Of The Week: The Market Made Me Do It

impulsive child“People still don’t understand the market isn’t their worst enemy; rather, it’s themselves. Impatience, lack of self-control, and knee-jerk reactions have devoured alive the investing public.”

That’s according to investment researchers at Morningstar.  Here’s what we can learn from their latest study:

There’s a big and growing gap between mutual fund returns and what investors actually earn. By buying and selling at the wrong times, the typical investor lost over 2% per year in returns. If they would have just “bought and held,” they would have made substantially more money each year.

“Individual investors have a penchant to self-destruct,” says Morningstar. But that’s not how it needs to be. The secret is to buy low, sell high – not buy high, sell low. Stick to your investment strategy, and don’t let the market psych you out.

Better yet, if hard-headed investing isn’t in your genes, get an investment advisor to do it for you.

 

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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