We all know how poorly individual investors do in the markets. Just look at any Dalbar study and you’ll see just how most investors don’t come close to achieving market returns.
One reason (but not the real one) why investors perform so poorly
Market structures are part of the problem. For years, it wasn’t Wall Street with its capital source, individual investors. It was Wall Street versus individual investors.
Selling is Wall Street’s essence just as surely as buying is Main Street’s. Wall Street almost never tells you to sell (The Indomitable Investor by Steve Sears)
It’s almost as if brokers and their clients were pitted against one another — brokers sold when their clients bought.
The real reason investors struggle
But, that’s not the main reason investors stink up the joint.
Continue reading “The biggest problem with investment strategies”
