Reuters reports that Vanguard says its customers “invested $130.4 billion in its mutual and exchange-traded funds during the first 11 months of 2012, beating the fund industry’s previous annual inflow record.”

The funds flowed mostly into equity funds. The company’s previous record was $104 billion in 2007.

The money has continued to flood in this month according to spokesman John Woerth.

If the little guy has finally said “the heck with it, I’ll get back into stocks,” it might be a good time to sell them what they want.

Douglas French

Douglas E. French is senior editor of the Laissez Faire Club. He received his master's degree under the direction of Murray N. Rothbard at the University of Nevada, Las Vegas, after many years in the business of banking. He is the author of three books, Early Speculative Bubbles and Increases in the Supply of Money, the first major empirical study of the relationship between early bubbles and the money supply; Walk Away, a monograph assessing the philosophy and morality of strategic default; and The Failure of Common Knowledge, which takes on many common economic fallacies. He is founder and editor of LibertyWatch magazine. Write him.

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