Game of Consultants

We often hear Warren Buffet’s words “Be fearful when others are greedy, and greedy when others are fearful.” But does this actually translate into action?

The herding behaviour in finance is broadly defined as an investor’s imitation of the actions of others rather than their own analysis. The fear of missing out on a profitable investment idea is often the driving force behind herd instinct. This behaviour of investors represents a major cause of speculative bubbles and leads to deviations of the stocks prices from their fundamental value.

Head to 180 Pulse’s latest article – “Mass Psychology and the Stock Market” where Ryan Barua emphasises the importance of a proper in-depth analysis of the market and the respective stocks.