Main Street savers hunting for better returns seem to be in the same boat as the so-called "smart money" on Wall Street: Lots of investors bought the recent stock market peak.
"We saw hefty inflows into stock mutual funds Monday, Tuesday, and Wednesday [last week] even with the market starting to crack," Charles Biderman, founder and CEO of investment research firm TrimTabs, told CNBC's "Squawk Box" on Monday. "So that is not a good sign if you see individual investors getting in when the market is starting to break."
Individual investors get the rap for being terrible market timers, but hedge fund managers haven't had much better luck. In a reversal of a three-year trend, hedge funds saw inflows to equity-based products last month and outflows from fixed income, according to institutional investor tracker eVestment.
(Read More: Hedge Funds Shift to Stocks, in Time for Pullback)