Mind the investing gap!

Spotting great investments doesn't help much if you bought near the top, sold at the bottom, or both. Humans often "follow the herd" by piling assets into funds that have recently done well, often missing the best returns, and then end up disappointed and sell at a loss. The Morningstar Mind the Gap study has thoroughly documented and discussed these biases and a key takeaway is that different types of funds nudge investors to behave differently. Markets also differ in how well investors can control their bad tendencies, depending on the products they can access and the type of advice they are...