Exactly!
Now, if the terminology is to convoluted, or the information is to sketchy commonsense should tell you, "don't put all your eggs in one basket". People buy mutual funds because they don't want to play the mkt, or don't feel they can analyze companies well enough to make good choices. However, if they have any sense they also put money in money mkts, C/D's, and bond funds.
This woman is seeing 16% returns on 400K. She wanted the $64,000 a year rather than $16,000 from a 4% return. She was dumb and deserves to be used as an example of why you need to be smart with your money.
Had the Gubmint not bailed out AIG the bottom would have fallen out of the bond market too.
This is a huge mess. and all the bad actors are getting rewarded.