The Asset Allocator: Dalbar's Louis Harvey On What Drives Investors To Lose Money (Podcast)

Investment consultancy Dalbar’s latest research suggests that it is a mistake for advisors to assume that investors have a static risk tolerance. To the contrary, it changes constantly – on the basis of both market conditions and the client’s constantly shifting personal status. In this podcast interview (14:07), Dalbar’s Louis Harvey suggests that advisors need to constantly assess and re-assess their clients' risk tolerance, and engage in behavioral coaching accompanying a tolerable asset allocation.

The Asset Allocator: Of Models And Marketing (Podcast)

This podcast (6:33) relates some examples of adulated investors who turned out to be in the main great marketers, and draws attention to a hard-to-market investment with which many investors have actually succeeded. The moral of the story is for advisors to focus firmly on keeping their clients invested for long-term success. Incidentally, a Dalbar study shows that a particularly hated model has been more helpful to investors than models that are more successfully marketed.

You’re making big financial mistakes – and it’s your brain’s fault

Since 1988, the stock market’s average return has been 10% per year. But stock fund investors have earned only 4.1% per year, according to Dalbar’s Quantitative Analysis of Investor Behavior.

Investors Are Usually Wrong. I’m One of Them.

Forget about getting everything right. Most people are so consistently wrong that merely avoiding major errors is enough to set you apart from the pack.

That is the message in the latest data from Dalbar, a Massachusetts research firm that has been studying the behavior of mutual fund investors for 25 years.

How to take advantage of all the uncertainty with the stock market

As the market soured in the final months of the year, investors pulled funds to mitigate losses, according to DALBAR's 2018 Investor Behavior Study, ...

Why Your Investment Return May Differ From the Fund Company's Returns

The habit can be costly. Research firm Dalbar publishes an annual study of investor behavior, which tracks cash flows in and out of stock funds. In 2018, the average investor trailed Standard & Poor’s 500-stock index by 5.0 percentage points. (The S&P 500 lost 4.4% in 2018, which means the average investor lost 9.4%.) “Judging by the cash flows we saw, investors sensed danger in the markets and decreased their exposure, but not nearly enough to prevent serious losses,” says Dalbar’s Cory Clark.

Investors Attempt To “Time” The Market And Lose Money

If you want to be an investor, don’t be an average one. It can very well be a ridiculous proposition. The individual investors on an average would make mistakes, just like they did last year and this is evident from the report that was published in the latest report of Dalbar, the financial research company.

Investors are losing thousands trying to 'time' the market

Dalbar also found that over a 30-year period it gets worse — the average investor loses almost 6 percent a year compared with the market's return.

The signal for avoiding market’s next painful downturn comes from within

...But after reading my column last week about the Dalbar Quantitative Analysis of Investor Behavior study showing just how lousy investor timing was in 2018, he wanted help to improve his timing...

WEALTH HEALTH: Investors failed the downturn test of 2018

The latest Quantitative Analysis of Investor Behavior study from Dalbar Inc. showed that average investors lagged the Standard & Poor’s 500 Index both in good times and bad during 2018, but investors got it the most wrong late in the year when the market got ugly.

Dalbar’s study, which has measured investment results compared to the market for a quarter-century now, has long shown that investments do better than investors. The problem is that investors typically buy into stocks and funds only after there has been a run of good performance and bail out when they suffer declines.

What Happens When You Miss the Best Days in the Stock Market?

...Investment research firm Dalbar publishes an annual survey of the average investor's performance versus the benchmark. Dalbar studied retail equity and fixed-income mutual fund flows (money in and out of the fund) each month from Dec. 31, 1997 to Dec. 31, 2017 to calculate the "average investor" return. The average investor performed below average when compared to buying and holding the S&P 500 index...

Wealth Matters: Stock market ‘guru’ same as ‘charlatan’

We are all influenced by our emotions, our hopes and fears. Such is being human. But these emotions do not always lead to the best decisions. When you add our attitudes about money to the mix, the results can be quite complicated.

Investors Bailed Out of Stock in 2018 and Got Double-Slammed

The average investor fled from the stock market and ended up losing twice what the S&P 500 did, Dalbar says.

They did it again. The average investor took money out of the stock market in 2018, a year that suffered from two painful corrections. And their investment performance was worse than the market’s, according to a survey by research firm Dalbar.

Opinion: Investors’ widely-held beliefs about ETFs and index funds may be wrong
Low-cost funds may be fixing the wrong problem, new data suggest

A new study has just shaken one of the biggest investment myths on Main Street.

An analysis of mutual fund stock trades over the past two decades has thrown into question the rationale that has sent everybody and her grandmother stampeding into low-cost index funds and exchange traded funds.

DALBAR: U.S. Investors Lost Twice As Much As The S&P 500 In 2018

A combination of volatile market conditions and bad timing caused the average U.S. investor to lose twice as much as the S&P 500 in 2018, according to a new study from DALBAR.

The research firm’s latest Quantitative Analysis of Investor Behavior (QAIB) found that investors were actually blown away by market turmoil last year, losing 9.42 percent over the course of 2018, compared with a 4.38 percent retreat by the S&P.

Investors Doubled Their Stock Market Losses in 2018 By Making This Costly Mistake. Here's How to Avoid It

When investors panic, they can shoot themselves in the foot. New data suggests that’s what happened last year.

It’s no secret that 2018 was a wild year for investors in the stock market. The S&P 500 hit a record high by late September, before falling more than 7% in October and more than 9% in December.

DALBAR study shows older women defy age and gender stereotypes when it comes to using technology to manage finances with paperless statements

Data from a recent DALBAR study that analyzed the interest in paperless statements, known as e-Delivery in the financial services industry, found that when it came to searching online for information about paperless statements, women across most age groups were more likely than men to be seeking out this service.

Is the Index Bubble About to Burst

“One reason for the disparity (of underperformance) is that active managers don’t bet the ranch with your money,” said Boston-based DALBAR’s CEO Lou Harvey. “They hold some aside for the time when things go wrong. This protection takes away from gains, since a portion of your money is held in low-yielding cash and bonds.”

Open MEPs could affect millions of retirement plan participants overnight

DALBAR’s Harvey: TPAs would benefit the most from Open MEPS among service providers.

The prospect of removing existing barriers to employer participation in Open Multiple Employer Plans could quickly impact millions of existing participants in small and midsized 401(k) plans.

To the Fiduciaries Go The Spoils

The word fiduciary has caused heartburn for most advisors. It is not the promise to act in clients’ best interest that scares most advisors; it is the task of proving that this was actually done that causes the pain. How is it possible to show that the motivation behind a recommendation is the client’s interest and not the compensation the advisor earns?

Complacency Is Weakest Cybersecurity Link: Dalbar/ThinkAdvisor Study

Despite the increasing fear Americans have of personal and financial information being stolen, most financial-services firms have been complacent on updating or implementing state of the art — or even basic — cybersecurity technology, according to a recent study by Dalbar/ThinkAdvisor entitled “The State of Authentication in Financial Services.”

How Scottrade Could Have Avoided DOL Rule Charges

Scottrade made a bet that the Labor Department's fiduciary rule wouldn't be enforced. It lost. But, for now, there's another way firms can keep their sales incentives.

Are Advisors’ Cyberdefenses Strong Enough? Dalbar-ThinkAdvisor Survey Seeks Answers

...“Authentication is now the primary defense, since the felons have already stolen the data,” said Lou Harvey, CEO of Dalbar, an independent financial-services market research firm, in an interview with ThinkAdvisor....

Statistics About Indexing's Advantage May Be Lying To You: Financial Advisors' Daily Digest

A new study by Dalbar finds that passive funds achieve higher returns, but active fund investors are better behaved and may actually come out ahead over the long term.

Dalbar’s 12 Factors to Measure When Picking Active or Passive Funds

In the longer term, Dalbar says, active investments have produced better results, which reflects investors' tendency to stay in these funds for longer ...

Interview: Louis Harvey, Dalbar

Ary Rosenbaum, That 401(k) Guy, Interviews Louis Harvey

Q: How has the rollout of the new fiduciary rule impacted your business?

A: Firms seeking to comply under the new rules are taking advantage of Dalbar‘s services including Registered Fiduciary (RF™), Auditing required under ERISA 408(g), Computer Model Certification, Proof of Reasonableness of Compensation and Assessment of Rollover Practices. The fiduciary rule also creates new compliance burdens for the contact center. We have integrated fiduciary rule compliance into our evaluation criteria. This new element adds to the value proposition of our Service Quality Measurement Program. We look forward to continue helping contact centers grapple with the practical implications of the rule...

Why Trump Will Not Cancel the Fiduciary Rule

Donald Trump has committed to repeal regulations that strangle economic growth and in particular those that impede small businesses. While he has not promised to repeal the DoL Fiduciary Rule, on the surface it appears to qualify as an impediment to the small businesses of hundreds of thousands of advisors who earn a living from commissions and other forms of compensation that the Rule limits.

Dalbar Tool Aims to Limit DOL Rule’s Pay Cuts: Top Portfolio Products

Dalbar estimates that the average advisor could see a $34,000 reduction in compensation

Radio Interview: QAIB Study

Radio Interview: Cory Clark, Head of Research and Due Diligence at Dalbar discusses the QAIB study with Matt Kennedy of The Presley Group.

DALBAR, 2016: Yes, You Still Suck At Investing (Tips For Advisors)

With the release of Dalbar's latest study, it would be prudent to both update, and remind you, of the problems investors continue to face despite the ...

DOL Fiduciary Rule is the new sheriff in town, Dalbar introduces solutions to new law of the land

Dalbar provides solutions to support whichever choices are selected so as to minimize risks, grow business and comply with the new “laws”.

Dalbar’s Harvey: DOL Fiduciary Rule’s Cost to Brokers’ Businesses

Dalbar CEO Louis Harvey talks to ThinkAdvisor about how the rule will change brokers’ day-to-day jobs — and how those who embrace their fiduciary duties can reap profits...

Fiduciary Rule Interview in ThinkAdvisor


Even When Timing the Market Correctly, You Can Underperform

According to the Dalbar's 2015 Annual Quantitative Analysis of Investor Behavior (QAIB) the average equity fund investor correctly timed the market in ...

Amid Market Decline, Don't Sell Yourself Short

Each year Dalbar, a Boston-based consulting firm, examines how average investors perform relative to what they invest in. And without fail, each year ...

McBride: Consider options carefully if you come into unexpected money

A widely cited study, called Dalbar's Quantitative Analysis of Investor Behaviour, compares investors' average annual returns to market returns.

Tools, Training to Address DOL Fiduciary Definition

It's not yet a done deal, but Dalbar expects the best interest contract (BIC) exemption in the proposed fiduciary definition by the Department of Labor ...

Want To Avoid Losing Money In Stocks? Do These 5 Things

Investing research outfit Dalbar has been publishing a series of reports for years now which include a comparison of U.S. stock market investors' ...

Investors should fear themselves

The oft-cited annual report by Boston firm Dalbar into average investor returns would indicate that a good financial adviser can significantly boost ...

Don't Let Stock Market Scares Dictate Your Strategy

Schmansky's observation is backed by some sobering numbers from research firm Dalbar, which since 1984 has studied the effects of mutual fund ...

We have met the enemy (of our portfolio) and he is us

Each year Dalbar updates its annual "Quantitative Analysis of Investor Behavior" report. The 2015 update reveals that over the most recent 20 year ...

The Most Important Chart Investors Have to See in the Bear Market Now

...Dalbar, the investing research outfit that came up with the data used in the chart, attributes the phenomenon to investors’ propensity to buy and sell their investments at the wrong times...

Lou Harvey: Retirement Advisors’ Value Is Misunderstood


Lou Harvey: Looking for Mr. Dalbar—The 2015 IA 35 for 35

The wizard behind the curtain of the ubiquitous research firm helped popularize behavioral finance and keeps the industry on top of important issues.

Lou Harvey honored as a top leader by Investment Advisor magazine!

The 2015 IA 35 for 35 - Lou Harvey honored as a top leader by Investment Advisor magazine!   ...

The No. 1 Mistake Investors Make

Financial data firm Dalbar annually updates its quantitative analysis of investor behavior study, which shows how the average fund investor performed ...

Dalbar Grants AXIS Retirement Analytics Platform Its Benchmark Methodology Certification Seal

Dalbar, a trusted source for helping the retirement industry in achieving excellence through evaluation and accreditation of strict processes has ..

Average Investors Have No Rhythm

A company named Dalbar sells an annual study of investor behavior and relative investment returns to financial advisors. The chart below has been ...

Why Is the Investor's Personal Rate of Return Missing on Financial Statements?

Only 25% of statements across the annuity, mutual fund, and brokerage sectors include a "personal rate of return," Dalbar's annual survey says.

Investment Firms Try to Find Their Social Media Groove

A recent ranking by research firm Dalbar reveals how Ameriprise, John Hancock, New York Life and Prudential have created winning social media campaigns... 

Investment Firms Try to Find their Social Media Groove

A recent ranking by research firm Dalbar reveals how Ameriprise, John Hancock, New York Life and Prudential have created winning social media campaigns.

American IRA-A National Self-Directed IRA Provider-Announces The New Quantitative Analysis Of Investor Behavior Study Shows Mutual Funds Underperformed by 7.4% per year.

According to Dalbar's data, the average investor in mutual funds trailed the index over the trailing 12 month, 3 year, 5 year and 10 year time period.

6 Top Mobile Websites for Investors: Dalbar

That's why Boston-based research firm Dalbar rated 48 financial services company apps, according to 11 distinct evaluation categories including ...

How to Avoid the Number 1 Mistake Investors Make

The latest research from Dalbar not only confirms this, but reveals the gap to be especially wide. Over the past 30 years, the S&P 500 has returned ...

There's An Unavoidable Reason Some Investors Are Bound To Fail

It's a necessity of how markets work. According to Dalbar and other research groups, the average U.S. stock investor has underperformed the market ...