herd behavior

Following the masses

Herd behavior is the tendency of individuals to follow what others are doing rather than act on independent judgment.

The term comes from how animals in herds move together, and it applies to humans who buy stocks because everyone else is buying, evacuate because neighbors are leaving, or adopt trends because they've gone viral.

The sell-off was pure herd behavior.

Opposites
decision-making autonomy

herd behaviorcritical thinking

Objective evaluation of information

original thought · freethought · self-reliance

social conformity

herd behaviornonconformity

Rejection of prevailing norms

individualism · contrarianism · dissent · iconoclasm · autonomy

information processing

herd behaviorvalue investing

Buying underpriced stocks fundamentally

due diligence · skepticism

Family

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