Are You an Over Confident Investor?
The answer, sadly, is probably “yes.” The American Association of Individual Investors surveyed its members and determined that as a group they overestimated their own returns by over 3% and felt overestimated their returns compared to the average investor by over 5%.
What does that mean? You may not be doing as well as you think.
One reason is due to trying to time the market. Studies show the average investor is statistically unlikely to “beat the markets.” Make smart investments, stay the course, and only sell when there is a compelling reason to do so. Then your confidence might be justified.