Dalbar 2014 Quantitative Analysis of Investor Behavior

I’m holding in my hands a hot-off-the-press Report from the well-respected research firm, DALBAR, Inc., about the actual returns investors have been getting in the stock market over the last 30 years. And it ain’t pretty… hot off the presses

The average investor in asset allocation mutual funds (which spread your money in a blend of equities and fixed-income funds) earned only 1.85% per year over the last 30 years!

These investors didn’t even come close to beating inflation, which averaged 2.8% per year.

The average investor in equity mutual funds averaged only 3.69% per year – beating inflation by less than 1% per year. (Was that worth the roller-coaster ride and sleepless nights?)