Finance Professionals Do Not Get Best Returns On Stock Market Investments

Studies have shown that stock returns of finance professionals have only gone up 8% this year, while those working in technology and advertising have had increases of 12.7% and 11.1%. This discrepancy does not mean that those in finance are incompetent, but highlights their wariness of the market. Financial experts take less risks because they are familiar with the market. Since they are also paid fairly well, they have less of an interest in increasing their current substantial wealth. Other research shows that one does not need to be a financial expert to make smart investment decisions. Those with a reasonable amount of intelligence and common sense seem to do fairly well in the market.

See Siri Srinivas, “Who Gets The Best Return On Stock-Market Investments? Not Finance Professionals,” The Guardian (Nov. 17, 2014).

Posted by Aryane Garansi, Associate Editor, Wealth Strategies Journal

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