Investor behaviour matters, probably even more than skill. It helps to understand one fundamental concept: Investment returns and investor returns are almost always different. You earn the investment return if you invest your money and then don’t touch it. No buying, no selling, just holding. But real people rarely invest this way.
Archive for September, 2013
Original article taken fromDNA Behavior BlogbyPeggy Mengel.
How engaging are your client experiences?
Your answer might depend on how you define the word “engaging”.
The reality is that there is no such thing as the best investment. But that doesn’t seem to stop us from looking for it. What if instead of spending so much time searching for the best financial product, we spent our time reflecting on what’s really important to us and then aligning our use of capital with those values?
The 2008 global market crisis and the struggling economy have left many investors fatigued. Despite two years of strong equity returns, some investors have been slow to regain market confidence. Many are accepting the talk about a “new normal” in which stocks offer lower returns in the future.1