The folks at BlackRock are quick to remind people that they are terrible investors.
For their new Chart Of The Week, BlackRock overlays the performance of the S&P 500 with equity mutual fund flows.
“Unfortunately, investors often take actions counterintuitive to investing best practices, they write. “In an ideal world, investors “buy low, sell high.” Though the rule seems simple, we’ve often seen investors do the exact opposite, especially during volatile times.”
As you can see from the chart, fund flows are low when prices are low, and they are high when prices are high.