Record amount pulled from stock funds last week! August 28, 2015Posted by shaferfinancial in Finance.
Tags: equity index universal life, Mutual fund failures, Poor returns in 401Ks
I want to apologize to my readers for not having posted for a while, but I have been moving. I am now settled in.
I just wanted to drop folks a note that last week there was a record amount of $$$$ pulled out of stock funds at $29.5B in the week ending Wednesday. This is typical of what happens to folks who are invested in mutual funds as they sell into the panic. Classic sell low, buy high phenomenon that Dalbar, Inc. studies document and the main cause of the 3.8% return the average investor has gotten out of their stock funds over the last 30 years.
I’m sure the mutual fund sales people/Wall Street will simply blame their clients for the failure as they always have, ignoring the real life demonstration of behavior based on how all our brains function.
My clients in EIULs had no such damaging behavior because their was no losses to deal with.