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Zigging when they should zag
Investors often buy and sell at the wrong time. Call it performance chasing, loss aversion, human nature or just bad luck, but they seldom really buy at the lows and sell at the highs. That's why most people make less on their investments than the indexes suggest. The graph above, from Lipper, shows fund flows and fund performance.

At its most extreme, this can lead to bubbles in the market. And with that idea in mind, we look back through history at some of the biggest examples of investors feeling they were getting in on a good thing, only to see it all crash.
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