Get UNBROKE - Asset Class Returns 1997 to 2016 - JPM Market Insights 3Q 2017

Average Investors Can Do Better

400 300 Charles Weeks

The average investor was one of the worst performers among types described in “Returns Without Dividends” from JP Morgan Market Insights Guide to the Markets, U.S. Third Quarter 2017. It shows the group barely outpacing inflation. The numbers were:

REITS: 9.7%
S&P 500: 7.7%
60/40 Stocks & Bonds:6.9%
40/60 Stocks & Bonds: 6.5%
Gold: 5.8%
Bonds: 5.3%
International Stocks: 4.6 %
Oil: 3.7%
Homes: 3.4%
Average Investor: 2.3%
Inflation: 2.1%

Why? As I have written in past posts,the major reason is our own bad behaviors.

We tend to let our emotions and our biases impact our investment decisions. However, some blame also must fall on Wall Street. While things are getting better, many investors were sold “suitable investments” that may have been expensive and not necessarily in their best interest.

As more information is shared and the average investor becomes more knowledgeable, I hope the return numbers for average investors improve.

If you haven’t reviewed your investment portfolio you should contact your CERTIFIED FINANCIAL PLANNER™ to get started.

Charles Weeks
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Charles Weeks

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