Herding Bias: Don’t be a sheep

“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

Disclosure: BFSG does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to BFSG’s website or blog or incorporated herein and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Company), will be profitable or equal any historical performance level(s). Please see important disclosure information here.