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.

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