Individual Investor Performance: Money in 60 Seconds

Question 1: Over the past 20 years, how have individual investors done? What kind of returns have they had?

Well, back up. We know that active managers tend to underperform the markets by about the amount of fees — mutual fund managers underperform by about the amount of fees. Over the past 20 years, individual investors have done even worse. So at a time when, according to Dalbar, the stock market has gone up annually 5.6, 5.8%, bonds have gone up annually 4.5%, individual investors — their money has gone up annually about 1.9%. So that doesn't even keep up with inflation, which is estimated to be 2.2%. Why is this? Because we sometimes are our worst enemies. I mean there are many reasons for it. But you over-trade, you tend to panic when times are tough, markets are bad, and you're trading in and out at the wrong time.

Question 2: My company doesn't report its gender pay gap, so it doesn't have one … right?

Uh, wrong. On average, if women are making 80 cents to a man's dollar — sometimes it's 78 cents, sometimes it's 82 cents — then on average, your company has a gender pay gap. And that can be even if it's great people who are there, because in a society in which men have been socialized to negotiate and women have been socialized not to, and bosses — who are just looking for the bottom line — if someone asks for the money they'll give it to them, and if they don't, they won't … you've got a gender pay gap. So if your company isn't reporting one, ask them to.


And go deeper on topics like cybersecurity and artificial intelligence at Microsoft on The Issues

Democrats have the power to impeach Donald Trump.

After all, impeachment simply requires a majority vote of the House of Representatives, and Democrats hold 235 seats to just 199 for Republicans.

Of course, impeaching the president is only the first step in removing him from office. It's merely an indictment, which then forces a trial in the Senate. Only a two-thirds supermajority vote (67 of 100 senators) can oust the president from the White House. Just two US presidents (Andrew Johnson in 1868 and Bill Clinton in 1998) have been impeached. Neither was convicted by the Senate.

Many Democrats, including two of the party's presidential candidates, argue the Mueller Report and other sources of information offer ample evidence that President Trump has committed "high crimes and misdemeanors," the standard for removal from office under Article Two of the US Constitution. But the impeachment question has provoked intense debate within the Democratic Party.

Here are the strongest arguments on both sides of the Democratic Party's debate.

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Should Sri Lanka have blocked social media following the terror attacks?

That's a hard one. Misinformation spreads on social media and there's an instinct to say, "Wait, stop it!" But a lot of useful information also spreads and people get in touch with each other. So I would say no they should not have blocked it.

Are Tesla cars at risk of exploding?

There was one video from China of a parked Tesla exploding. I don't think you really have to worry about it though. I am curious to know what that video was really about.

Why do tech companies hate the census citizenship question?

Because if you ask people whether they're citizens. A lot of people will answer and you'll get bad data and the card companies need to know where they set up their operations. Good data matter to Silicon Valley.

What happened during the Space X Crew Dragon accident?

We don't know this one for sure either but one of the engines in a SpaceX test exploded. No one was hurt. Let's hope it was something to do with the way it was set up - not something deep and systematic.


And go deeper on topics like cybersecurity and artificial intelligence at Microsoft Today in Technology.

What's troubling you today? A revisionary new talk show hosted by Vladimir Putin offers real solutions to your everyday problems.

Crises create opportunities. That's the story of European politics over the past decade, and Spain offers an especially interesting case in point.

On Sunday, Spanish voters will go to the polls in the country's third national election in less than four years. Gone are the days when just two parties (center-right and center-left) dominated Spain's national political landscape. As in other EU countries, the economic spiral and resulting demand for austerity triggered by Europe's sovereign debt crisis, and then a title wave of migrants from North Africa and the Middle East, have boosted new parties and players. Catalan separatists have added to Spain's political turmoil.

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