Buy High, Sell Low: Investors’ Herd Behavior
March 15th, 2008 by bruce_richmondKeeping up with the Joneses effects investment decisions, according to a couple of Stanford U. profs. Fear of missing out seems to be a driving factor. We don’t want to be poor when everyone around us is rich.
Making the wrong decision is not as bad as not making the right one. After all, when the bubble bursts, everyone loses together.
This certainly explains all the new Rich Dad fans vying to be landlords during the real estate boom. Now that foreclosures and tighter credit have driven prices so low, where are they? Waiting for the market to turn again, of course.
Meanwhile, the savvy investors are quietly picking up bargains every day.
March 15th, 2008 at 2:44 pm
[…] Foreclosures wrote an interesting post today onHere’s a quick excerptBuy High, Sell Low: Investors’ Herd Behavior March 15th, 2008 by bruce_richmond Keeping up with the Joneses effects investment decisions, according to a couple of Stanford U. profs. Fear of missing out seems to be a driving factor. We don’t want to be poor when everyone around us is rich. Making the wrong decision is not as bad as not making the right one. After all, when the bubble bursts, everyone loses together. This certainly explains all the new Rich Dad fans vying to be landlords duri […]