1. Equity fund investor vs. S&P 500 Index
20.00%
10.00%
2008
1.87%
8.35%
Equity fund investor
S&P 500
0.00%
20 Years
-10.00%
-20.00%
-30.00% % %
-40.00%
-50.00%
Source: Dalbar, Quantitative Analysis of Investor Behaviour, 2009.

2. Equity fund investor vs. S&P 500 Index from 1989-2008
$500,000
$450,000
$400,000
$350,000
$316,739
$300,000
$458,933
at 8.35%
$250,000
$200,000
$150,000
$100,000
$100,000
$142,194
at 1.87%
$50,000 $0
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Equity fund investor
S&P 500
Source: Dalbar, Quantitative Analysis of Investor Behaviour, 2009.

3. The cycle of market emotions
Mindful investing
The cycle of market emotions
Point of maximum financial risk
“Temporary setback. I’m a long-term investor.”
“Wow, I feel
great about this
investment.”
Euphoria
Anxiety
Thrill
Denial
Excitement
Fear
Optimism
Point of maximum financial opportunity
Desperation
Optimism
Panic
Relief
Capitulation
Hope
Despondency
Depression
“Maybe the markets
just aren’t for me.”
Source: Westcore Funds/Denver Investment Advisers LLC, 1998.