As late as March 2003, Gail Dudack observed: “Net redemptions since the beginning of 2002 have been tiny compared with total stock fund assets. The net cash outflow in the 12 months ending March 30, 2003, amounted to 3.6 percent of the sector’s assets. Usually, before a new cycle begins, outflows are much greater—as high as 8 percent a year. You need cash to fuel a new cycle,” Dudack explained. “Until you get the sell-off that creates liquidity, a new cycle can’t begin.”28
