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What Has the Greatest Impact on Investment Results? 1985-2014
The #1 threat to your investment portfolio is unbridled emotion. More money is lost due to fear and greed (how we respond) than all of the financial, economic and geopolitical events combined. It’s not the events themselves but our response to the events that can cause the greatest harm.
• How harmful? The average investor doesn’t come close to beating the S&P 500 Index and barely outpaces the rate of inflation.