Be it 2000 or 2008, market crashes have hit retail investors really hard. But as the market fell this time, the inflow into mutual funds from retail saw a record high. Will these investors finally make money?
Barton Biggs, a well-known hedge-fund manager and author of Hedgehogging, is known for his anecdotes. In his book, he mentions how his partner’s mother mother-in-law has always been a contra-indicator for him. When she said the dollar would fall further and they “would not be able to afford to go to Europe again”, he knew it would rise from of a fall, but there will be some who will stick around. Indeed, some of them will be around. That is because somebody advised them, or they simply did not look at the market on a day-to-day basis to experience the greed and fear that moved in a time lapse.
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