We know that many equity inves­tors stampede for the exits when they smell trouble and that they generally have little interest in return­ing to the theater until long after the scare has ended. We saw this play out once again when mutual fund investors stayed out of U.S. equities for most of the rally off of the March 2009 lows, only to finally regain their cour­age in mid-April 2010, right before the major market aver­ages began the current 15%+ correction.

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