Why Investing Makes Smart People Feel Stupid By David Edwards About this article: According to AMG Data Services, which tracks the flow of funds into and out of different categories of mutual funds (e.g., equity, fixed income and international), for the third quarter, a record $51.1 billion was drawn out of equity funds, both U.S. domestic and international, and a record $43.5 billion was deposited into bond funds. What happened in October? Equities rallied and bonds fell. In essence, millions of investors, I'm assuming with some degree of intelligence, sold low and bought high. Isn't that the opposite of what investors are supposed to do? In most economic transactions, lower prices generally lead to more demand. For example, if steak is on special at the grocery store, more shoppers will buy steak than veal roast. If car manufacturers offer zero-percent financing, more cars are sold. This is called getting good value. But, as has been rehashed ad nauseam, investors wanted... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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