What blind spots do you have when you manage your money?
What blind spots do you have when you manage your money?
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Herd mentality and speculative psychology
In financial markets, "herd behavior" is the cause of excessive market rise and fall.
When you see the stock market making money, you rush into it; people say that the government bonds are reliable, and you put all your money into the national debt.
In a certain range, the herd can get benefits, but the influx of funds is too much, it will inevitably produce bubbles.
And the investors who can reverse the herd operation will get unimaginable long-term returns.