4 Secrets to Beating the Average Investor

4 secrets to beating the average investor

Sumary of 4 Secrets to Beating the Average Investor:

  • The average investor likely has a less-exciting future than you do.
  • 1. You take market returns According to a 2020 study by financial research company Dalbar, average investors earned about 5% annual growth in their accounts over the last 30 years.
  • That’s roughly half the average growth rate of the S&P 500 (SNPINDEX:^GSPC) in the same time frame.
  • To be fair, the performance gap between the average investor and the S&P 500 hasn’t been quite as dramatic in recent years.
  • 31, 2019, for example, the average investor earned 11.5% annually, while the S&P 500 grew by 15.3% annually.
  • SPLG’s 10-year average annual return lags the S&P 500 by about 0.1% .
  • The Vanguard ETF’s 10-year average annual return is only 0.04% behind the S&P 500. 2. You stay calm The Dalbar report finds that 70% of the average investors’ underperformance occurred in volatile markets.
  • If you hold shares in an S&P 500 index fund, you own a portfolio consisting of the 500 largest and most successful public companies in the U.S. Most of these companies have a history of managing through turbulent markets, and then returning to growth.

Want to know more click here go to source.

From -

Close
Generic selectors
Exact matches only
Search in title
Search in content

Site Language


By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close