How Herding Behavior Turns Smart Crowds Into Dangerous Mobs
I have watched intelligent individuals make collectively stupid decisions simply because everyone around them was doing the same thing. Herding is not a flaw of the uneducated. It is a human default that operates below awareness, and in markets it can transform reasonable optimism into catastrophic bubbles or manageable concern into destructive panic. Understanding when you are following the crowd rather than the evidence is a skill that pays for itself many times over.
Keep reading