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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Investor2 who wrote (2002)11/5/1997 8:56:00 PM
From: sea_biscuit  Read Replies (3) of 42834
 
RE: One possible explanation is that a few of the investors heard "total" return and gave an answer like 200%. Most others heard "annual" return and gave an answer like 12%.

The above scenario is consistant with the average = 34%, while the median was only 15%.


Where is this information available? Again, I find it hard to believe that 12% to 15% is what the average investor expects! Looking at the participants in the current mutual-fund fever, many of whom have gotten in during the last 2-3 years, I would imagine that they expect annualized percentage returns at least in the low 20s, if not higher than that. [Returns in the last 3 years have been about 28% annualized, so the "wise guys" would subtract about 5 or 6 percent from that and come up with 22 or 23. At least that is my guess...]
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