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Suggestions regarding investor behaviour on Mutual funds?


Suggestions regarding investor behaviour on Mutual funds?

The average investor does not control his own destiny in mutual funds, so looking to the "investor" for psychological insights here is not going to yield anything. Mutual funds are run by "managers" and they have multi-millions to literally billions of dollars under control.
Obviously, trying to understand these guys is very difficult. Most managers have a set model that they use and is generated by computer. Buy and sell orders are generated by computers and I have found that many computer models are ironically tuned to the Fibonacci number set.
You want to understand mutual fund behavior and thus the behavior of the entire markets, then understand the Fibonacci principles.

Very much like sheep-
driven irrationally by the two primary emotional drivers of investors: Fear and Greed.
They tend to buy high and sell low.
Why do you think the mutual fund industry is able to make BILLIONS (yes, with a B) of dollars in profits every year while approx 3/4ths of the funds actually UNDERperform their benchmark index?

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