The insiders buy on the way up, and dump on the retail investors before things come crashing back down (who are drawn in by the reports of how much money is bei

The insiders buy on the way up, and dump on the retail investors before things come crashing back down (who are drawn in by the reports of how much money is being made on Wall St. Not all of them execute flawlessly on this of course, but the bulk of who ends up losing out in this situation won't be those professionals, but rather the retail investors, or those who experienced higher costs on the way up in their 401k's and other retirement accounts and will be selling them at lower prices as they enter retirement (or otherwise will be experiencing likely a few years of sub-optimal growth). A major issue here is that while normally those approaching retirement are advised to diversify from equities into a fairly sizeable portion of fixed income, ultimately, many moved away from this strategy over the last few years due to the Fed's bond buying program, which ultimately drove up the price of bonds as well, keeping yields low, so the usual ability to see at least some growth without taking on the risk associated with equity markets wasn't nearly as available as it has been in the past. Those who didn't adjust, meanwhile, are taking major hits, as their bond holdings have seen value plummet amid the Fed backing off of the bond buying program, and are stuck between selling at a loss or holding low yielding bonds. As for the managers of those mutual funds...well, most of those funds don't have them anymore, since the Vanguard revolution initiated by Jack Bogle, as the bulk of the industry is passive mutual funds, which simply track their associated index. They're cheap (in terms of expense ratio), but offer nobody steering the ship to react in the face of turbulence...always a trade off to bear in mind.