When the barbarians are at the gates, interest rates rise and bond prices fall precipitously. - William J. Bernstein

In fact, the nation's biggest investment pools are the retirement funds of the large corporations and governmental bodies, such as the California Public Employees Retirement System (CALPERS), which manages an astounding $170 billion. These plans receive a level of professional management that even the nations wealthiest investors can only dream of.

The brokerage and mutual fund business form a financial colossus that bestrides modern financial, and increasingly, social and political life.

The rub here is that buying when prices are low is always a very scary proposition. The low prices that produce high future returns are not possible without catastrophe and risk.