Small investors permanently soured on stocks?

In 2008, $234 billion flowed out of equity mutual funds; the selling really intensified in the fourth quarter. In 2009, some thought the worst was over, but $9 billion still flowed out of equity funds. In 2010, the outflows picked up again.

As of the end of August, about $19 billion had left stock mutual funds.

So, what to make of this?   Reuters suggests that the break between retail investors and the stock market is deep and lasting. The worry now is that a Lost Decade will create a Lost Generation of investors who avoid the market in a way not seen since the Great Depression.