“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.” – Charles MacKay
What is Herding Bias? In behavioral finance, herding bias refers to investors’ tendency to follow and copy what other investors are doing. When markets are volatile, it could lead to behavior that is not fully rational such as selling a stock based on emotion, rather than by your own independent analysis. Don’t be a sheep and dare to stand out from the crowd.
BFSG Shorts: Herding Bias
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