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!

Subscribe to our updates

Stay informed about financial planning and investing issues that impact your life today and tomorrow! (we respect your privacy)

No comments yet.

Leave a Reply