The Stock Market Equivalent of a Bank Run

I think at 6500 the market properly prices in the fundamentals of the economy but my friends at a few fund of funds are telling me that forced selling by hedge funds is driving the market. Investors just want their money back and heavy redemptions will likely begin again next month. So there is a good chance the market goes much lower and there is nothing one can do even though stocks are screaming cheap – that is because the arbs that would take advantage of the mispricing are the very same ones being forced to sell. Hence, there is no buying support. That’s why I say this is the stock market equivalent of a bank run – technical phenomena.