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.

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