You wouldn't believe how many baby boomers cashed out of stocks in their retirement plans a few week's ago! They just couldn't take the pain anymore.
Some will never have a chance to recover from losing over half their funds over the past year. Was that the real bottom? One thing for sure, the market will be comparing to some aweful numbers this fall.
Long term (I think the market will be trading sideways in a wave-sign - meaning up for the next 3 months or so, drift lower for the summer and drop in the following 3 months (Sep, Oct, Nov) where we could re-test the previous lows, then repeat the process next year. That said, however, I think good stocks like VSCI and many others would not necessarily follow the market this low next time around if their fundamentals keep improving, and rather, you will see a shift of a lot of money into these good stocks. Wath relative strength ranking (RSR) at that time to help you sort the good from the bad.