S&P 500 – 9.14%
Average Equity Mutual Fund Investor – 3.27%
The problem is, the 5.87% ‘behavior gap’ is actually an improvement over many years’ results. Additionally, now that many people have gone through the “Dot Com” and “Mortgage Crisis” bubbles, people are learning to avoid some of the behaviors that result from the greed and fear we experienced during those periods. In reality though, we see these harmful behaviors more often than not when working with investors. If we simply remember that human nature can often tell us to do the wrong thing at the wrong time, we can help ourselves and our portfolios.