Investors expectations in the height of the crisis/now (Equity market)

Sounds like a home work question to me. I will give you what I feel and how I react which is unlikely to be how everyone or even the majority act/feel. The rest if this is homework is for you to do a bit more research.

1)I feared losing my job - as far as my personal investments - most were for long term/retirement and for my children's education. Working in the financial industry and majoring in economics, I realized that for my personal investments, there was little to worry as I would not be using investments I had in equities at the earliest 8 years (when oldest would be going into college). Fortunately for me, my short term investments were properly invested in short-term fixed income vehicles so for investment purposes I had little worry. And took advantage of the down market to invest in equities. The other worry I had was for future sale of my condo - hoping to sell next year.
2) Current fear - sale of my condo - we hope to sell and buy a house next year. I do expect the market to slowly recover, however, not sure how slow. And still have uncertainity about the job market and potential for outsourcing of jobs/future layoffs and continued cutbacks of benefits.

Market prices always reflect future expectations. How? Simple logic...if the majority of investors expect the market to grow in the near future, they would have put money into the market pushing the equity prices up even before you would actually see a true return in a company's profit. (the buy low concept) - if you are uncertain of the future (whether you expect the market to continue to decline or go up) you are less likely to make a move...