The Failed Investor

The Failed Investor

November 23, 2021

Over the past twelve (12), almost thirteen (13) years, starting on March 9, 2009, the S&P 500 has compounded at approximately 17.5% per year.

Let that sink in.

If one were to have invested in the market, for example the S&P 500, on that exact date and not touched their investment, they would have had a return of around 17.5% per year (I know that I am cherry picking that exact date, but you’ll soon understand why).

But when we look at the average investors returns, we see that most portfolios are nowhere near that.

Why is that?

The short answer…human nature. Meaning the general psychological characteristics, feelings, emotions, and behavior traits shared by all humans.

See, on that date, we were on the back end of the great recession. The market was down approximately 50% and fear was driving the markets.

Then what happened, as the financial “experts” and prognosticators continued to pump negativity into the world? On that date in 2009, we started one of the greatest bull markets we have ever seen - missed by so many as their emotions kept them on the sidelines.

At this point, I hope you are realizing that human nature is the failed investor. When it comes to investing, one must remove those emotions felt by all…much easier said than done.

So how does one do this consistently?

First, stop listening to the soothsayers (the financial media) and making decisions based off what they are selling. In addition, know that the economy cannot be forecasted, and the market cannot consistently be predicted - no matter how many “experts” are trying to convince you otherwise.

Second, have a long-term, goal focused comprehensive financial plan.

The plan allows you to think of your investments as merely the vehicle that is going to help you to reach your goals. A plan makes it easier to take a step back when you start to feel your emotions take over, keeping you from making spontaneous decisions - a move which could have detrimental effects on your family’s lifetime financial success.

Important Information


Advisory services are offered through Melone Private Wealth, LLC (“Melone Private Wealth”). Advisory services are only offered to clients or prospective clients where Melone Private Wealth and its representatives are properly licensed or exempt from licensure. For additional information, please visit our website at

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.

Past performance is not a guarantee of future returns.

Source: Nick Murray Interactive

All investments include a risk of loss that clients should be prepared to bear. The principal risks of Melone Private Wealth strategies are disclosed in the publicly available Form ADV Part 2A.