Herd Mentality in Equity

Some things are so common with human nature. We always tend to follow what our neighbours have done, what our relatives have done, what our collegues are doing in terms of cars, houses and even careers. So it is no wonder that investment manager across the globe have the same point of view at any given time. Either they are super bearish or bullish.

So when markets are done everybody is selling and when up everybody is buying.. how predictable.. we do not ever put our minds. We follow the pundit and the channels.

Always keep two things in mind. Do not always follow the herd and secondly ask yourself if you are comfortable putting your money in a particular stock for next 5 yrs.