Franklin Templeton has some results from its Investor Sentiment Surveys. It seems that perceptions often matter more than clear data when people are asked how well the market has done. I’ve graphed the results below, since they’re so striking:
To be fair, these investor’s portfolios, could have been down or flat, even if the market as a whole were up. If that were the case then this wouldn’t be a description of financial illiteracy, but an argument to buy index funds rather than managed funds.