Investors showed uncanny calm, inertia or perhaps even malaise during the recession, with a scant 1% selling out of equity funds at the height of the market volatility in October 2008, Vanguard found.
However, perhaps even more earth-shattering is that investors have gravitated to bond funds, unlike other rebounds, when investors returned to equity funds. The extreme volatility investors witnessed in 2008, coupled with the memory of a second bear market and the dot-com crash in the past 10 years, has evidently caused new reactions.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access