« Experiment design: psychology | Main | State of Bank Regulation »

Buy low, sell high: hard to execute



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."

inflow_outflow_SP500_timing.png

TrackBack

TrackBack URL for this entry:
http://www.stylizedfacts.com/cgi-sys/cgiwrap/fotohof/managed-mt/mt-tb.cgi/8344

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)