What is herding in financial management?

If you participate in a mass run, a common phrase used is “herding mentality”. This is referring to everyone running very fast at the start because everyone else is. This is sustainable and soon, only the stronger runners continue at that pace. The same is true in investing – where everyone tries to follows a particular behaviour. Check out this article that elaborates the practice and how to spot it…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s