The article discusses the herd mentality in Behavioral Finance. It states that in a control group, participants find it easy to answer correctly but becomes uncertain with their answers when others who preceded them gave a different ...
However, there are many instances where emotion and psychology influence their decisions, causing them to behave in unpredictable or irrational ways. Herd mentality represents an irrational group behaviour, which is found even with institutional investors, including fund managers.Mishra, Lokana...
Behavioural Finance, as a subject matter, deals with how a behavioural approach to financial decision making can add value to our knowledge and understanding of finance per se. Greek Philosopher Aristotle had described man as a rational being. Financial market participants are primarily rational "weal...
Human beings are prone to a herd mentality, conforming to the activities and direction of others in multiple ways, from the way we shop to the way we invest. The fear of missing out on a profitableinvestmentidea is often the driving force behind herd instinct, especially in the wake of go...
(Note: Those with a herd mentality focus only on negative aspects, failing to appreciate the positive.) This stock was supposed to fail, but it has somehow surpassed expectations. Perhaps I should have taken the risk and invested in it. (Note: Only halfway through the fifth stage will a ...
Globalization brought with it the mentality that all countries are free traders, and friends. Dirty mining and processing? NIMBY. Let China do it, let the DRC do it, let whoever do it. China recognized opportunity knocking and answered the door Read more March 12, 2021 Renforth excites ...