- How much profit they will make
- How fast they will make
- How likely they are to lose money instead
In other words, many people—even those with ample money to invest—have no fucking idea what investing is all about. This explains almost everything about the global financial industry.
The survey found that “The overall average level of desired income, globally was 9.1%.” Meanwhile, the global stock market yields less than half that much, and many believe that global economic growth is slowing down, meaning those returns may be falling rather than rising. The report modestly notes that “achieving an annual return of 8% or 9% is a near impossibility withouttaking on significant levels of risk.”
The survey also finds that low risk is the top concern of investors.
While it is possible that growth rates could rise in the long term, lifting annual returns up to something resembling what people say they want now, that would also require being invested for the long term. But investors surveyed said they only wanted to hold things for 3.2 years on average.
Before we can get anything fixed everyone has to stop being suckers.