There are so many funds in the market.. almost as many funds as there are stocks listed. This means that when investors in these funds panic, that panic is transferred to the fund.... Broad based selling of stocks within their portfolios, to meet the cash demand of thier unit holder withdrawl.

It may take some time for this washout of disconected " from the individual story" investors. Investors in funds by definition know little about individual stocks, thats why they choose to invest in a fund.... What we have is a stampeed of stupid people cloging the exit doors as the fire engulfs them.... Human nature of the masses to follow rather than lead....Only the leeming that refuse to jump off the cliff survive... The gene pool is cleansed, and average IQ is increased.