OK, but in that case is there a distinction between index funds and actively managed funds? Is this a risk that index funds are uniquely exposed to?
Also, another thing to keep in mind is that this only affects people who are trying to sell at the bottom. Buy and hold investors care little for liquidity issues during a crash.
Also, another thing to keep in mind is that this only affects people who are trying to sell at the bottom. Buy and hold investors care little for liquidity issues during a crash.