The Herd Mentality: When Emotions Cloud Judgment

Humans are social beings, and this tendency extends to investing as well. The herd mentality is a phenomenon where investors follow the crowd without fully understanding the underlying reasons for their actions. When a particular stock or asset class is surging, FOMO can cause individuals to jump on the bandwagon without conducting thorough research or considering their unique financial circumstances.

About the Author

Picture of Amy Novakovich, CFP®, CRPC®

Amy Novakovich, CFP®, CRPC®

Amy is a Co-Founder of Nova Wealth Management. She is a native of Wisconsin and moved to Florida in 2004. She earned a degree in finance from Florida Gulf Coast University. Amy is a CERTIFIED FINANCIAL PLANNER™ professional (CFP®) and a Chartered Retirement Planning Counselor® (CRPC®).