The market rises and the market falls- it will never be perfectly consistent. Based on research for the Dalbar study, it was discovered that there is a significant gap between the S&P 500 and investor returns that lead to the question, “Why is this gap present?”
This gap is caused by a current behavior of investors that is actually hurting more than helping; acting irrationally based on the condition of the markets. When the market is high, investors add to their investments, and when the market is low, many bail. Could it be better to stick out the bad times?
Hopefully this leaves you with some great food for thought! Have a great weekend everyone!