It is well known that investors' attitude toward risk changed immensely during and after the bear market of 2007-2008. The shift toward safer fixed-income choices and a reduced reliance on equity funds is seen in the flows data.
For example, in 2008, investors withdrew nearly $73 billion net from equity funds (after a net purchase of $179 billion the year before), and added $64 billion to taxable and municipal debt funds. The following year saw bonds continue to draw more attention than equities. A paltry $5 billion net was added to equities funds, while the pair of bond fund groups took in a whopping $465 billion net (all flow figures include ETFs).
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