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- ⚠️Retail investors are underperforming the market for the 5 year straight
⚠️Retail investors are underperforming the market for the 5 year straight
The underperformance would have been even larger if not for the stock market recovery
Global Markets Investor
May 16, 2025
In partnership with
An average retail investor’s portfolio is down 2% year-to-date, and is underperforming the S&P 500 for the 5 consecutive year.
The largest divergence was seen in 2022 when retail lost 55% on average versus a 20% loss of the index.
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Even last year, when the market experienced historic gains, individual investors underperformed by three times.
The reason for that is simple, most investors base their decisions on emotions and invest too much money that they can afford to lose. This is a great strategy to gain below-average returns or even lose money if a bear market occurs.
Such an approach also risks huge investment portfolio swings, which certainly do not help to sleep well, especially during drawdowns.
Meanwhile, the Global Markets Investor’s portfolio is up 9.6% year-to-date with NO major drawdown during this period.
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