Mutual Funds Climb Back After A Wild Ride

The summer sell-off made fund investors more cautious

For investors, 1996's third quarter is sure to be remembered as one of the most schizophrenic periods in years. Early in the quarter, the Dow Jones industrial average plunged nearly 400 points in a few weeks' time, a move proclaimed by many market gurus to be the final curtain on the six-year-old bull market. But the market came roaring back, and the Dow and the Standard & Poor's 500-stock index have broken through old highs. With corporate earnings strong and interest rates steady, the market seems poised for further gains.

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