FYI: Empirical studies have documented patterns of behavior among mutual fund investors that appear irrational or suboptimal. For example, investors chase past performance, reallocating money from funds with poor recent returns to funds with high recent returns, even though it reduces their wealth in the long run. Research has found this behavior holds not only for individual investors, but for pension plans (institutional investors) as well.
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-what-returns-can-teach
