Don't Be Your Own Worst Investing Enemy

Many investors aim to have their gains match or beat a standard investment benchmark. According to Dalbar's annual Quantitative Analysis of Investor Behavior, 2024, the average investor falls short, earning 5.5% less than their targeted stock benchmark and 2.63% less than their chosen fixed income benchmark.

BEHIND THE STATISTICS

Often, investors weigh emotional behavior and personal recommendations too heavily against the knowledge and experience of investment professionals. Look at the checklist to see if this could be you.

• When deciding whether to sell a stock, you may be emotionally fixed on the price you paid for it and avoid selling so you won't regret having made a "bad" investment, resulting in a reportable loss.


• Are you hesitant to sell an investment that's had significant gains but its performance has fallen off? Remember, the past performance of any investment doesn't guarantee future results.


• Beware that paper losses are stressful and can trigger you to sell prematurely.


• Being too quick to jump on the latest trend or family or friends' recommendations without thorough research and talking with your financial professional first can be detrimental to achieving your goals.