“The idea is to buy low and sell high. Poor old mom and pop can’t seem to get it right. They buy high and sell low. Dalbar, an outfit that tracks investment performance, calculates that $100,000 invested 20 years ago would have grown to $484,000 if you just left it in the S&P 500 and did nothing else. But the typical investor waited too long to buy and then sold out when stocks went down. At the end of 2012, he had only $230,000. And now that stocks have been run up – by the Fed’s easy money policies – for 5 years, Mom and Pop can’t help themselves. They’re back in the stock market…ready to be skinned again.”

http://www.equitymaster.com/dailyreckoning/detail.asp?date=08/12/2013&story=12&title=Moms–pops-to-be-skinned-again

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