Fear and Greed
People often ask “why do my investment returns seem lower than the markets?” We tell them it’s because investors tend to follow a cycle of fear and greed: when stocks are up, people feel good about the markets and they buy (greed). When stocks are down and all the news about the markets sounds bad, they sell (fear). The more this is repeated, the worse it gets.
It is important not to get caught up in these cycles. Getting free from this cycle is a key to investing success.