{"id":109666,"date":"2017-07-26T10:04:29","date_gmt":"2017-07-26T14:04:29","guid":{"rendered":"http:\/\/countingpips.com\/?p=109666"},"modified":"2017-07-26T07:05:00","modified_gmt":"2017-07-26T11:05:00","slug":"retail-investors-face-an-ugly-truth","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/07\/retail-investors-face-an-ugly-truth\/","title":{"rendered":"Retail Investors Face an Ugly Truth"},"content":{"rendered":"<div id=\"inves-3027509892\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">July 26, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/WallStreetDaily.com\/\"><u>WallStreetDaily.com<\/u><\/a> <img loading=\"lazy\" decoding=\"async\" class=\"attachment-home-th size-home-th wp-post-image\" style=\"display: block; margin-bottom: 5px; clear: both;\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/07\/072617_TheTruthIsntPretty_feature.jpg\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" srcset=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/07\/072617_TheTruthIsntPretty_feature.jpg 580w, https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/07\/072617_TheTruthIsntPretty_feature-300x155.jpg 300w\" alt=\"Retail Investors Face an Ugly Truth\" width=\"580\" height=\"300\" \/><\/p>\n<ul>\n<li>Retail investors must face a harsh reality.<\/li>\n<li>S&amp;P 500\u2019s track record vs. the average Joe.<\/li>\n<li>Innovation to the rescue once again.<\/li>\n<li><a href=\"https:\/\/pro.agorafinancial.com\/m\/719148\" target=\"_blank\" rel=\"noopener\"><strong>Also recommended: Nothing drives stocks higher, faster\u2026<\/strong><\/a><\/li>\n<\/ul>\n<hr \/>\n<p><!--END Hero Title and bullet point--><\/p>\n<p><!--Lead--><\/p>\n<p><img decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-louis-basenese.jpg\" alt=\"Louis Basenese\" \/><\/p>\n<p>When it comes to picking stocks, the individual investor has a pretty poor track record.<\/p>\n<p>In 2016, the S&amp;P 500 rose 12% on a total return basis.<\/p>\n<p>Not bad\u2026<\/p>\n<p>But according to data from Openfolio, a public social network for investors, the average investor\u2019s portfolio earned just 5%.<\/p>\n<p>In other words, the market beat the average Joe by more than double.<\/p><div id=\"inves-3860503894\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Yikes!<\/p>\n<p>It\u2019s not that retail investors are dumb.<\/p>\n<p>More often than not, though, the average investor makes key mistakes that lose them money.<\/p>\n<p>They might make emotional investment decisions \u2014 rather than logical ones. They pile into crowded trades at market tops. Or they sell stocks at bottoms when they should be <i>buying<\/i> them.<\/p>\n<p>The list goes on\u2026<\/p>\n<p>But it doesn\u2019t have to be this way.<\/p>\n<p>In fact, thanks to an innovative new company, investors can spread their bets around to many different sectors and stocks rather than risk a bad bet on any particular one.<\/p>\n<p>No, I\u2019m not talking about mutual funds or ETFs.<\/p>\n<p>Thanks to an innovative and little-known investment strategy, you can be your <i>own<\/i> fund manager \u2014 buying a basket of your favorite stocks for one ultra-low, flat fee.<\/p>\n<p>It\u2019s called motif investing, and it\u2019s taken the investment world by storm.<\/p>\n<p>This groundbreaking strategy warrants your immediate attention.<a name=\"video\"><\/a><\/p>\n<p>Senior analyst Martin Hutchinson provides the full rundown below.<\/p>\n<p>Ahead of the tape,<\/p>\n<p>Louis Basenese<br \/>\nChief Investment Strategist, <em>Wall Street Daily<\/em><\/p>\n<hr \/>\n<p><script src=\"https:\/\/fast.wistia.com\/assets\/external\/E-v1.js\" async><\/script><\/p>\n<div class=\"wistia_responsive_padding\" style=\"padding: 57.0% 0 0 0; position: relative;\">\n<div class=\"wistia_responsive_wrapper\" style=\"height: 100%; left: 0; position: absolute; top: 0; width: 100%;\">\n<div class=\"wistia_embed wistia_async_8yxxr4hfi5 videoFoam=true\" style=\"height: 100%; width: 100%;\"><\/div>\n<\/div>\n<\/div>\n<hr \/>\n<p>Today I\u2019d like to talk about a little-known concept called motif investing. This has been developed by the company <a href=\"https:\/\/www.motifinvesting.com\/\" target=\"_blank\" rel=\"noopener\"><strong>Motif Investing<\/strong><\/a>, which allows you to pick a motif, an idea, around which they will construct a portfolio.<\/p>\n<p>They also have dozens of preset motifs you can buy into without figuring out the stocks yourself.<\/p>\n<p>You can select categories like values, sustainable planet, fair labor or good corporate behavior.<\/p>\n<p>Although, I have to say that their good corporate behavior portfolio includes Google, Disney and Bradesco, which was a huge bribe-giving Brazilian bank.<\/p>\n<p>I wouldn\u2019t regard any of those companies as behaving particularly well. So your values have to align with theirs if you\u2019re doing their values portfolios.<\/p>\n<p>But the individual motifs can be useful.<\/p>\n<p>You can get motifs like \u201cUsed-Car Tuneup\u201d and \u201cApple Pay.\u201d And then more general motifs like \u201cEmerging Markets Consumer\u201d and \u201cRising Interest Rates.\u201d<\/p>\n<p>And they charge you a flat, low fee of $9.95 for investing your money in a motif.<\/p>\n<p>Does it work? Well, I think in moderation it does.<\/p>\n<p>I like Emerging-Markets Consumer as a good place to invest, but I\u2019ve never heard of many of the companies they\u2019re recommending there. And certainly, I don\u2019t have time to investigate emerging-market consumer stocks in detail. So it makes sense to put a bit of my money in their Emerging Markets Consumer portfolio.<\/p>\n<p>It has a bit too much middle-market China for my taste. So I certainly am not going to trust my whole wad to this system even if I did think Emerging Markets Consumer was the ultimate next six-month pick.<\/p>\n<p>But nevertheless, if some of the motifs make sense to you, it\u2019s worth putting a little money there.<\/p>\n<p>And as a final note, the motif matching the Ivy League endowment model has underperformed the Standard &amp; Poor\u2019s 500 in the past year by 25 points.<\/p>\n<p>So if motif investing puts more power in the individual to think of ideas himself and deploy money, then it\u2019s worthwhile in taking power away from the professionals who may not be doing a very good job.<\/p>\n<p>This is Martin Hutchinson signing off.<\/p>\n<p>Smart investing,<\/p>\n<p>Martin Hutchinson<br \/>\nSenior Analyst, <i>Wall Street Daily<\/i><\/p>\n<p>The post <a href=\"https:\/\/www.wallstreetdaily.com\/2017\/07\/26\/retail-investors-face-ugly-truth\/\" rel=\"nofollow\">Retail Investors Face an Ugly Truth<\/a> appeared first on <a href=\"https:\/\/www.wallstreetdaily.com\" rel=\"nofollow\">Wall Street Daily<\/a>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com Retail investors must face a harsh reality. S&amp;P 500\u2019s track record vs. the average Joe. Innovation to the rescue once again. Also recommended: Nothing drives stocks higher, faster\u2026 When it comes to picking stocks, the individual investor has a pretty poor track record. In 2016, the S&amp;P 500 rose 12% on a total [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-109666","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/109666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=109666"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/109666\/revisions"}],"predecessor-version":[{"id":109673,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/109666\/revisions\/109673"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=109666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=109666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=109666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}