Comments on: Investors behaving badly http://www.canadiancapitalist.com/investors-behaving-badly/ Helping you invest and prosper Fri, 19 Mar 2010 16:54:36 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Morningstar study on investor returns | Canadian Capitalist http://www.canadiancapitalist.com/investors-behaving-badly/#comment-211252 Morningstar study on investor returns | Canadian Capitalist Thu, 18 Feb 2010 15:23:40 +0000 http://www.canadiancapitalist.com/?p=2262#comment-211252 [...] investor returns (hat tip to The Stingy Investor) confirms once again what other studies, such as DALBAR’s Quantitative Analysis of Investor Behavior, have consistently shown: investors are hurt by performance chasing and market timing. Morningstar [...] [...] investor returns (hat tip to The Stingy Investor) confirms once again what other studies, such as DALBAR’s Quantitative Analysis of Investor Behavior, have consistently shown: investors are hurt by performance chasing and market timing. Morningstar [...]

]]> By: 5 Dumb Mistakes That Smart People Make | Redeeming Riches http://www.canadiancapitalist.com/investors-behaving-badly/#comment-203559 5 Dumb Mistakes That Smart People Make | Redeeming Riches Mon, 09 Nov 2009 12:14:05 +0000 http://www.canadiancapitalist.com/?p=2262#comment-203559 [...] no wonder that the 2008 Dalbar study showed the return for the S&P 500 for a 20-year period ending 2008 was 8.35% while the average [...] [...] no wonder that the 2008 Dalbar study showed the return for the S&P 500 for a 20-year period ending 2008 was 8.35% while the average [...]

]]> By: Thicken My Wallet » Blog Archive » How would we do in a world without financial advisors? http://www.canadiancapitalist.com/investors-behaving-badly/#comment-201856 Thicken My Wallet » Blog Archive » How would we do in a world without financial advisors? Wed, 21 Oct 2009 08:58:38 +0000 http://www.canadiancapitalist.com/?p=2262#comment-201856 [...] in 2004 is the rule rather than the exception, excess trading may not be as large a culprit of poor investor return as some studies indicate. It could be we invest like we date in high school; we chase the attention [...] [...] in 2004 is the rule rather than the exception, excess trading may not be as large a culprit of poor investor return as some studies indicate. It could be we invest like we date in high school; we chase the attention [...]

]]> By: Thicken My Wallet » Blog Archive » Does the average investor fair better in stocks or real estate? http://www.canadiancapitalist.com/investors-behaving-badly/#comment-198070 Thicken My Wallet » Blog Archive » Does the average investor fair better in stocks or real estate? Mon, 17 Aug 2009 08:58:14 +0000 http://www.canadiancapitalist.com/?p=2262#comment-198070 [...] a 10 year window with the end date being market bottom,  DALBAR’s analysis estimates that an average investor earned a paltry 1.87% a per annum. The poor results have been attributed to investors investing emotionally and buyin [...] [...] a 10 year window with the end date being market bottom,  DALBAR’s analysis estimates that an average investor earned a paltry 1.87% a per annum. The poor results have been attributed to investors investing emotionally and buyin [...]

]]> By: Doubts on Equity Risk Premium | Canadian Capitalist http://www.canadiancapitalist.com/investors-behaving-badly/#comment-196262 Doubts on Equity Risk Premium | Canadian Capitalist Thu, 23 Jul 2009 04:06:59 +0000 http://www.canadiancapitalist.com/?p=2262#comment-196262 [...] market timing and transaction costs: Many studies have established that the returns obtained by the average investor falls far short of m.... However, intelligent investors who pay careful attention to expenses and emotions have high odds [...] [...] market timing and transaction costs: Many studies have established that the returns obtained by the average investor falls far short of m…. However, intelligent investors who pay careful attention to expenses and emotions have high odds [...]

]]> By: Why do ETF Investors do worse than Index Mutual Fund Investors? | Canadian Capitalist http://www.canadiancapitalist.com/investors-behaving-badly/#comment-194072 Why do ETF Investors do worse than Index Mutual Fund Investors? | Canadian Capitalist Tue, 23 Jun 2009 03:53:25 +0000 http://www.canadiancapitalist.com/?p=2262#comment-194072 [...] June 22nd, 2009 · Jon Chevreau recently blogged (see John Bogle says investors getting killed by ETFs) on John Bogle’s analysis of returns experienced by investors in Exchange-Traded Funds (ETFs) and the results are not pretty: In 68 out of 79 ETFs, the returns experienced by investors lagged that of the ETFs themselves by an average of 4.5%. Bogle also found that investors in ETFs did much worse than investors in index mutual funds. In some categories such as large-cap stocks and small-cap stocks, the gap was particularly large — more than 7%. And the shortfall was as much as 12% in REITs! These results mirror that of the famed DALBAR study, which consistently finds mutual fund investors earning lower returns than the funds themselves (see Investors Behaving Badly). [...] [...] June 22nd, 2009 · Jon Chevreau recently blogged (see John Bogle says investors getting killed by ETFs) on John Bogle’s analysis of returns experienced by investors in Exchange-Traded Funds (ETFs) and the results are not pretty: In 68 out of 79 ETFs, the returns experienced by investors lagged that of the ETFs themselves by an average of 4.5%. Bogle also found that investors in ETFs did much worse than investors in index mutual funds. In some categories such as large-cap stocks and small-cap stocks, the gap was particularly large — more than 7%. And the shortfall was as much as 12% in REITs! These results mirror that of the famed DALBAR study, which consistently finds mutual fund investors earning lower returns than the funds themselves (see Investors Behaving Badly). [...]

]]> By: LinkStuff May 15 - NHL and Car Companies http://www.canadiancapitalist.com/investors-behaving-badly/#comment-191543 LinkStuff May 15 - NHL and Car Companies Fri, 15 May 2009 09:02:09 +0000 http://www.canadiancapitalist.com/?p=2262#comment-191543 [...] Canadian Capitalist had the lates Dalbar results which show that as usual investors behave badly. [...] [...] Canadian Capitalist had the lates Dalbar results which show that as usual investors behave badly. [...]

]]> By: This and That: Market melt-up edition | Canadian Capitalist http://www.canadiancapitalist.com/investors-behaving-badly/#comment-190903 This and That: Market melt-up edition | Canadian Capitalist Fri, 08 May 2009 03:48:50 +0000 http://www.canadiancapitalist.com/?p=2262#comment-190903 [...] ← Investors behaving badly [...] [...] ← Investors behaving badly [...]

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/investors-behaving-badly/#comment-190870 Canadian Capitalist Thu, 07 May 2009 21:04:52 +0000 http://www.canadiancapitalist.com/?p=2262#comment-190870 @DGI: I think Bogle estimated the actual investor returns based on fund inflows and outflows. He does note that it is hard to estimate but my gut feeling is that it is correct. Investors do panic and pull money out in bear markets. They also may not be making regular investments and waiting for the dust to settle. Problem is when markets bounce back sharply, as we've recently seen (if March indeed was the bottom). @Alexandra: I tend to think of advisors as average investors as well, though they may disagree :) As a group, they chase performance and panic just like DIY investors. @DGI: I think Bogle estimated the actual investor returns based on fund inflows and outflows. He does note that it is hard to estimate but my gut feeling is that it is correct. Investors do panic and pull money out in bear markets. They also may not be making regular investments and waiting for the dust to settle. Problem is when markets bounce back sharply, as we’ve recently seen (if March indeed was the bottom).

@Alexandra: I tend to think of advisors as average investors as well, though they may disagree :) As a group, they chase performance and panic just like DIY investors.

]]> By: Dividend Growth Investor http://www.canadiancapitalist.com/investors-behaving-badly/#comment-190867 Dividend Growth Investor Thu, 07 May 2009 20:47:55 +0000 http://www.canadiancapitalist.com/?p=2262#comment-190867 I am also surprised that index investors could underperform the S&P 500 due to "timing". I guess if you dollar cost average yor way into an index fund over the course of an year, you would underperform the index by year end in most years, especially since over 70% of the years the markets go up.. I am also surprised that index investors could underperform the S&P 500 due to “timing”.
I guess if you dollar cost average yor way into an index fund over the course of an year, you would underperform the index by year end in most years, especially since over 70% of the years the markets go up..

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