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Whenever Ben Bernanke speaks to the media, or stocks wobble, or interest rates rise, you are seeing investors do the kneejerk.

The kneejerk is not a new dance step. It’s an emotional response that indicates investors are thinking and acting short-term. In 2012, the kneejerk caused $156 billion of net cash to flee long-term U.S. equity mutual funds, according to the Investment Company Institute. In June of 2013 alone, it drove $80 billion of net cash out of long-term U.S. bond funds (mutual funds and ETFs), according to Trim Tabs Investment Research.

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