Investor behavior has been very unusual since the market’s 70% rally began in early March, and if hundreds of billions of dollars of retail investors’ money remains on the sidelines, market volatility or even a bear market could continue, The Wall Street Journal reports.

Rather than follow performance, as investors historically have done, they have invested a mere $7.8 billion in stock funds since March 10, whereas historical patterns would suggest they would have placed $150 billion or more in stock funds. By comparison, between 2002 and 2007 when the market rose, inflows to domestic stock funds topped $250 billion, and between October 2007 and the beginning of March 2008, outflows approached $200 billion.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.