Where Investors Put Their Money in 2018

2018 was the most volatile year in a decade on the stock markets.  How did investors react? 

I interpret this analysis as showing that people were trying the time the market  (a big no-no at Ignite HQ!).  There were large inflows to cash (money market funds) in Q4 of 2018 - why is this bad? Because the S&P 500 has gone up by 18% so far in 2019.  So those individuals crystallised losses in Q4 2018, and possibly missed out on the rebound in 2019.

For most people I don't think you should be market timing.  Your financial plan and investment strategy should be robust enough to tolerate short term market fluctuations.

Courtesy of: Visual Capitalist