They want their assets but don't like when they pull them back out. The kinds that would diversify your portfolio. That will, of course, turn out to be true years from now, when we can look back with 20-20 hindsight. But right now, in real time, neither I nor anybody else can tell you exactly which kinds of funds will turn out to be the best kinds for right now. So, given that reality, you should make sure you own a variety of funds that will keep you covered no matter what shrapnel the markets fire at you.
Hot money follows hot returns.
Now more than ever, hot funds are one of the best ways to get yourself burned, but good. You bet they will. In reality, funds remain the best tool ever devised to capture satisfactory returns over long periods of time. If you want to hire somebody who can beat the market silly, then forget about mutual funds. The market can be beaten, but it takes a lot of patience and enormous vigilance.