Dalbar Quantitative Analysis of Investor Behavior (QAIB)
Dalbar Quantitative Analsysis of Investor Behavior (QAIB) examines real investor returns in equity, fixed income and asset allocation funds. The analysis covers the 20-year period ended December 31, 2009, encompassing both the drop at the turn of the millennium and the crash of 2008. The 2010 report discusses how Modern Portfolio Theory failed to protect investors from the precipitous losses of the past couple of years and offers alternatives to this long-standing standard of investment strategy. Overall, QAIB has found:
Investment results are more dependent on investor behavior than on fund performance...
source: http://www.qaib.com/public/about.aspx?activeMenu=GLB-4
While investors seem to be learning hard lessons from the past 15 years, the original QAIB findings still hold true: Mutual fund investors do not achieve the returns cited by fund firms due to their irrational behavior,
Said Lou Harvey, president of DALBAR. (March 31, 2010) DALBAR's annual Quantitative Analysis of Investor Behavior (QAIB).
*The highlights are mine.
