According to BCA Research, mutual fund flows reflect that retail investors still prefer lower yielding corporate and government bonds over equities.

FORBES: Bonds: Risk-free returns or Return-free risk?

In fact, per Strategas, from March 2009 through July 2011, mutual fund flows reflect that the average investor has been a net seller of stocks despite a near 100 percent market rally during the time period.

FORBES: Investor Illusions

The amendments require that mutual fund financial data reflect amounts the fund would have paid to its service providers, such as its custodian, transfer agent, law firm or printing firm, if a broker had not paid those providers on behalf of the fund.

FORBES: New SEC Action: More Brokerage Disclosure to Confuse Mutual Fund Investors (April 1, 1996)

Now he argues that Washington Mutual is artificially boosting profits, later taking writeoffs to reflect the true picture.

FORBES: Is Accounting Dead?

Most mutual funds have stayed alert and shifted their holdings to the areas that reflect the new American economy, dominated by information technology.

FORBES: The Dow Is Dead