Financial Herd Instincts

Avoid the financial community’s herd instincts that override common sense and logic, Be aware of what is often referred to as the Bandwagon Effect, the propensity of professional and then following average investors to pursue the same line of investment thinking.

I would like to have my readers follow up the importance of the work done by the 19th century French economist Frederic Bastiat, who said people see benefits but never the hidden costs. It is one of his lessons that goes beyond politics into the realm of investing.