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Average Investor Returns Compared 1994-2013

We believe successful investing takes not only research and knowledge, but also patience and a long-term strategy. According to the popular independent research company DALBAR, Inc., investors tend to chase “hot investments” and pull money out at the wrong time. Shown below are the average returns of our respective portfolios invested through a long-term and disciplined investment strategy compared to the “average investor’s” and inflation returns as reported by the DALBAR study.

*“Average Investor” Source: DALBAR, Inc. Quantitative Analysis of Investor Behavior 2013 - Represents average annually compounded return of the equity mutual fund, fixed income, asset allocation investor and inflation based on the length of time shareholders actually remain invested in the investments.

Understanding Market Volatility

Dangers of Market Timing: As the following chart shows, last year’s winners can become this year’s losers.

The Callan Periodic Table of Investment Returns conveys the strong case for diversification across asset classes (stocks vs. bonds), investment styles (growth vs. value), capitalizations (large vs. small), and equity markets (U.S. vs. international). The Table highlights the uncertainty inherent in all capital markets. Rankings change every year. Also noteworthy is the difference between absolute and relative performance, as returns for the top-performing asset class span a wide range over the past 20 years.

View Larger PDF of The Callan Periodic Table of Investment Returns (Click on Link)