In the financial markets, herding behaviour is often exhibited by investors following the crowd and buying or selling assets based on the actions of others, rather than making their own independent decisions.
"In the financial markets, herding behavior is often exhibited by investors following the crowd and buying or selling assets based on the actions of others, rather than making their own independent decisions." ---
Great article. Makes sense to me.
There’s an older book from the early 2000s called Mean Genes: From Sex to Money to Food, Taming Our Primal Instincts. That book essentially argues that our default design was optimized for the caveman days long ago.
Back then, if you saw everyone running away and stopped to ponder whether you should too, the predator got you — and your genes didn’t make it into the gene pool for the next generation.
Nowadays, as an investor, it pays to think independently, even while every fiber of your being tells you to go with the crowd.
"In the financial markets, herding behavior is often exhibited by investors following the crowd and buying or selling assets based on the actions of others, rather than making their own independent decisions." ---
Great article. Makes sense to me.
There’s an older book from the early 2000s called Mean Genes: From Sex to Money to Food, Taming Our Primal Instincts. That book essentially argues that our default design was optimized for the caveman days long ago.
Back then, if you saw everyone running away and stopped to ponder whether you should too, the predator got you — and your genes didn’t make it into the gene pool for the next generation.
Nowadays, as an investor, it pays to think independently, even while every fiber of your being tells you to go with the crowd.
Thanks for the reco. I heard about that book, but will definitely check it out this time.
And now it’s gold and silver. Welcome to the party