FLBC 009: Understanding the Psychology Behind Investing
Full Illustrations available on YouTube Version here.
Questions/Issues We’ll Address on this Episode:
- What is up with the psychology behind investing? Looking at the numbers any rationale person would avoid destructive behaviors right?
- What is the difference between active and passive investment management?
- What has taken place with investors and their behavior?- DALBAR Quantitative Analysis of Investor Behavior sites that between January 1, 1985 to December 31, 2014::
– equity mutual fund investors underperformed the S&P 500 (the equity market proxy) by 8.19% (13.69% vs. 5.5%)
– fixed income mutual fund investors underperformed the Barclays (the bond market proxy) by 4.81% (5.97% vs. 1.16%)- Parting Thought: What if instead of trying to outperform the market to create wealth, you instead looked at the market as a way to preserve the wealth you are creating through your income?
Where to Find Us:
Dominique is owner of DJH Capital Management, LLC. a full service, comprehensive financial planning firm helping individuals build roadmaps to reach their financial dreams.
© 2016 DJH Capital Management, LLC.
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