The Average Person Is Absolutely Horrible At Investing [Chart]

The Average Person Is Absolutely Horrible At Investing [Chart]
News
Like Us On Facebook
Like Us On Facebook

BlackRock’s chart of the week has shown us something that most of us have speculated for a long time: the average investor is really, really bad.

“Volatility is often the catalyst for poor decisions at inopportune times. Amidst difficult financial times, emotional instincts often drive investors to take actions that make no rational sense but make perfect emotional sense. Psychological factors such as fear often translate into poor timing of buys and sells.

Though portfolio managers expend enormous efforts making investment decisions, investors often give up these extra percentage points in poorly timed decisions. As a result, the average investor underperformed most asset classes over the past 20 years. Investors even underperformed inflation by 0.5%.”

Paul Hudson | Elite. 

Share Tweet
React

Paul Hudson

A young writer, philosopher, and entrepreneur, Paul Hudson has been writing for Elite Daily nearly since the start. Currently located in Manhattan, Paul Hudson primarily devotes his time between writing for Elite Daily and the two entrepreneurial endeavors he is currently pursuing: a mining company in Turkey and a video content platform called lilHub. He loves sharing his life experiences with his readers and makes sure to practice what he preaches.

More In News

Technology Sean Levinson

Google Unveils Smart Contact Lens With Built-In Camera

For any who feels that recent developments in wearable technology is borderline invasive, this one will take the cake. Google has invented a “smart contact lens” that literally brings technology in direct contact with your corneas. If Old Gregg had anything to add here, he’d call this “as close as you can get to the […]

Also On Elite

Wellness

Are You Sure You’re Okay? Why We Lie About How We’re Doing

How are you? Everything good with you? We get asked these same questions multiple times a day, every day. How many times do you average a day? Five? Maybe 10 a day? What this means, I hope you realize, is that every person tells a minimum of five to 10 lies per day, because the […]

Life

Put Your Phones Down: Why We All Could Use A Break From Technology

Cell phones are great. They offer a variety of privileges and advantages: photography made easy, communicating quickly and, of course, the included entertainment value. It’s become a much-needed item to carry for daily personal, professional and emergency use. People spend so much valuable time sending messages, taking photos and scrolling through an assortment of apps. […]

Envision

This Graffiti-Painting Drone Will Change The Way Street Art Is Made (Video)

Graffiti artist KATSU, who is perhaps best known for inventing the “fire extinguisher spray can” that enables the user to tag surfaces from a distance, has revealed he has invented a graffiti drone that is literally capable of taking street art to new heights. In an interview with Motherboard, KATSU revealed that he was able […]