(New York Times) — THE stock market rallied for a year, but mutual fund flows and other sentiment indicators suggested that many investors didn’t believe what they were seeing. In the second quarter, they showed more conviction — and became convinced that stocks should be avoided. An attitude adjustment appeared to have arrived on May 6, when the Dow Jones industrial average fell about 1,000 points before a sharp recovery cut the loss near the day’s close. The immediate cause of the frightening move has not been determined, though there was speculation that a “fat finger” at an investment bank pressed the wrong button and sent a sell order that was much bigger than it was supposed to be.
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