Patience is a virtue when it comes to investing. It’s human nature to want to own winners and avoid losers. Unfortunately, investor behavior often works against a successful long-term investment program. Generally, investors—left to their own devices—sell losers at the wrong time and invest in hot sectors, only to see the performance of recent winners cool
Lessons from the Investor Gap. The “investor gap”—the difference in how funds perform on paper and how they perform for their investors—has been widely acknowledged. The gap is almost always negative for investors. Investors often are betrayed by their restlessness. Investors sell losers and reinvest in winners all too often in a hot investment sector that starts to cool.
Emerging Markets Stocks Storm Ahead. Last year emerging markets stocks sold off horribly. This year we’ve had a reversal. Since this year’s market correction, where technology and biotech stocks sold off, emerging markets stocks have soared—the biggest outperformance since 2009. Financial Times (tiered subscription model).
Investors Starting to Look at Commodities Again. After several tough years, investors are starting to warm again to commodities funds. Commodity funds were shunned last year. This year, commodities funds are outpacing the S&P 500 by a wide margin. Financial Times (tiered subscription model).
And in case you missed it, click here to read last week’s blog post which focuses on planning for transition times in your life.
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J. Mark Nickell & Co.
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