“Herd Mentality” is a psychological principle that refers to the way people naturally conform to the behavior of others. In a positive sense, herd mentality is why traffic lights are societal norms everyone adheres to. But in the world of financial investments, it can be detrimental to your portfolio and ultimately the markets. In 2008, people got spooked and soon everyone was selling—causing American financial markets to drop 40 percent.
Tune in to hear what mullets and Herd Mentality have in common.