Its a somewhat rhetorical question, with the assumption that there will be a 'reloading' in a massive way. Once funds stabilize by meeting proper margin requirements on their subprime debt holdings, isn't it a -very- likely possibility that the very same funds selling stock (and covering shorts) to raise funds to meet margin calls will reload positions ??? I know when I've been on a tight margin what I've done upon getting my account straight -- I quickly reload after shuffling things around. Fundamentally the quants don't disappear, and their valuation models, derived from painstaking research, will drive their buying and selling decisions. I see two large primary barriers to a quick 'releveraging of their positions': 1) obvious continued instability of credit markets and its cascading effect on other asset prices (noteably subprime mortgagebacks), 2) impatient hedge fund investors pulling money out of these funds at the most inopportune times, pushing cash out of the funds. Reading this article I can't help but think that this event of equity selling is as much if not moreso a -technical- event than solely a fundamental event. The bears are always arguing for imminent recession, and even I will agree financials' depressed valuations may be appropriate in a response to fundamental change in the credit markets -- they will do less business likely. A broader step of what makes price: In these markets the participants generally agree on terms of valuation (ie P/E, growth estimate, risk premium, etc), but at the same time the -actions- of buyers and sellers are the final say. ie if you have a market of 10 participants, and 5 of them experience unforeseen adverse medical events, even a stock that makes more $$ when people get sick may go down, since half of the participants may be liquidating positions to cover their mess in personal finance. So here and in what we see, its clear valuation models are trumped by investor disposable cash reserves when deciding what stock or commodities are worth. A lesson to those who view valuation and price in more static terms. Reading the Jim Simons letter per rentec..