Advisors know that many investors chase returns, which means they often buy high and sell low. A new report from Morningstar shows that the typical investor now is posting returns that are closer to the average returns of mutual funds than in the past. Perhaps the public is learning the value of rebalancing?
The Morningstar report is silent on the role advisors play in getting clients to reduce exposure to portfolio leaders and buy more of the laggards. Even so, the numbers imply that investors are not acting as much out of passion as they once did.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access