Stockholm Syndrome and the American Investor

The psychological condition made famous by Patty Hearst, in which captives become grateful toward their captors, has now taken hold of the investor class.  Surviving a two year period during which 41% of market days saw a 1% or greater swing, investors have become glad just to earn something – just to break even – on their investment capital.

This investor version of the Stockholm Syndrome is apparent in the results of a recent poll by Fidelity Investments (via Boston Biz Journal):

According to the survey, more than half (55 percent) of investors say any positive gains in their portfolios in these markets qualifies as a success, while another 23 percent believe that break-even investment returns can be considered successful.

754 investors were surveyed in late September – a pretty hefty sample group compared to most investor polls.  That investors are happy to “just not lose money” is not news to those of us on the front lines.  It is a sentiment we hear all the time.

This type of gratitude after years of market torment is reminiscent of the kidnapee who effusively thanks his captors for loosening the bonds around his wrists.  When I got into the business, the expectation from the investor class was an 8% to 11% annualized return from their equities, come hell or high water.  These days, we’re talking boiled shoe leather and an hour of sunlight in the yard.

Sources:

Poll: Investors Have Low Expectations (BostonBusinessJournal)

What's been said:

Discussions found on the web
  1. Bitcoin Loophole Review commented on Sep 22

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2010/10/11/stockholm-syndrome-and-the-american-investor/ […]

  2. btc evolution commented on Sep 30

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2010/10/11/stockholm-syndrome-and-the-american-investor/ […]

  3. blazing trader commented on Oct 01

    … [Trackback]

    […] There you can find 2639 more Info on that Topic: thereformedbroker.com/2010/10/11/stockholm-syndrome-and-the-american-investor/ […]

  4. orangeville real estate agents commented on Oct 16

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2010/10/11/stockholm-syndrome-and-the-american-investor/ […]

  5. 사설토토 commented on Oct 16

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2010/10/11/stockholm-syndrome-and-the-american-investor/ […]

  6. 안전놀이터 commented on Nov 01

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2010/10/11/stockholm-syndrome-and-the-american-investor/ […]

  7. 메이저놀이터 commented on Dec 15

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2010/10/11/stockholm-syndrome-and-the-american-investor/ […]

  8. buy Dexedrine online commented on Jan 13

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2010/10/11/stockholm-syndrome-and-the-american-investor/ […]

  9. replica watches commented on Jan 14

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2010/10/11/stockholm-syndrome-and-the-american-investor/ […]