Bad news for the mutual fund industry. The volatile market has stymied the "long haul" game; an increasing number of financial advisers are moving larger portions of their clients' assets into cash positions.

"When you see the market dropping like a rock, does it make sense to tell most people that they should be O.K. with that?" said Tim Maurer, director of financial planning for The Financial Consulate. Many of his clients at his Hunt Valley, Md.-based practice have moved as much as 50% of their assets into cash over the last two quarters.

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