Through the long bull market, indi-viduals learned that the most effective way to make money was to buy more stocks. Until the final manic phase when day-trading took off, their favcured way of doing so was through mutual funds. The process was often perceived to be a virtuous circle, with new money boosting share prices, which brought in fresh money which further boosted share prices, and so on. There is a pervasive fear that the opposite could be unfolding now: a downward spiral, with declines in share prices prompting waves of redemptions and further price declines. It is a seductive theory, but questionable.
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