1] people invest money in funds 2] funds buy stocks and try to run them up 3] funds post good/impressive records 4] based on those records investors pile in (using hindsight) 5] funds get more money and they run up stocks some more 6] repeat steps [1] to [5] until all money is invested 7] there is no more fuel (money) to run up stocks 8] funds perform poorly as smart money exits and prices fall 9] funds try to stem tide (like past year and right now) by mktg 10] people get scared and pull out 11] funds sell to meet redemptions 12] repeat steps [10] and [11] until money is sucked out 13] when net redemptions stop..... we start all over again at [1]