(04-16-2020, 09:38 PM)TIKR Wrote: I know everyone knows this but I think a helpful reminder.Bobby
The average investor has underperformed the S&P 500 by ~460bps/year. DALBAR, which performs this annual study, attributes the underperformance to investors attempting to time the market and moving into and out of investments too frequently.
The best thing to do is to continue to buy and hold for the long-term, especially during market drawdowns such as the one we are currently experiencing.
Another favorite example of mine is the Magellan Fund. Peter Lynch generated 29% annualized returns during his tenure. Guess what the average investor made in his fund? The average investor lost money because they invested in and redeemed from his fund at exactly the wrong times!
Try to focus on the long-term prospects of the companies you are investing in.
Wishing you all the best out there!
Bobby
It may not sound like it from reading our posts, but almost everyone here maintains a long-term buy and hold DGI port. We discuss them less frequently but there are many threads on the subject. There are a few here that time the market with large parts of their port, but mostly not. Trading is a side game for some of us, with a small amount of our assets. We tend to chat a lot about the trading buckets. Frankly it's more entertaining. I learn quite a lot from my trading activities. And yes sometimes I learn I would have been better off not trading.
The last month was very good though. The volatility has been lucrative. TO some degree I rescued my badly beaten up long-term holdings.