What Is Herd Behaviour In Markets?
Herd behaviour is when investors copy the crowd instead of thinking independently. It drives bubbles,
crashes and the extremes a Fear and Greed Index measures.
The herd
Following the crowd feels safe, it kept our
ancestors alive.
In markets
It makes you buy high in euphoria and sell
low in panic.
A Fear and Greed Index measures the herd so you need not join it.
Source: CFGI
Markets