[Obi_Juan_Kenobi]

Markets are complicated. Especially in the short term, you have large forces that aren't concerned only with future expected value.

For instance, if you manage a fund that sold substantially on the way down, you now have a great deal of cash you need to do something with. Considering a 'local bottom' has been found, you may be very interested in trying to re-enter the market now. The risk of waiting for a lower entry begins to compete heavily with the risk of missing a buying opportunity.