To get in an unnecessary line because you think you are supposed to. There are risks associated with any investment and we strongly encourage readers to We join the bunch rides and a few cyclists run a red light, the rest follow. If that same mentality is being applied in that line of vehicles pouring out of Macomb, Oakland, Wayne (Genesee?) Contrary investing is the art of going against the crowd and the pressures of conformity. Featured Article. if (d.getElementById(id)) return; Bumper to bumper as far as you could see, moving around 50 or so as Michigan heads north.
Scrutinize the data and come to your own conclusions. Wall Street this week has been reacting in knee-jerk fashion to political and policy events. If that same mentality is being applied in that line of vehicles pouring out of Macomb, Oakland, Wayne (Genesee?) If this scene is being duplicated across the State (and Country), we are ALL about to find out in the next week or so. }(document, 'script', 'facebook-jssdk')); Our Hometown • July 09, 2020. The mood of investors is persistently gloomy. Take the Hell Ride for instance. This is when things get out of control. But if everyone is expecting prices to go up, odds are that everyone who intends to buy already has bought. (function(d, s, id) { The converse of the above rule also is true. You've successfully been signed up for our free e-Letter(s)! Got any questions or feedback? All Rights Reserved. By following my advice below, you can learn to recognize the extremes of crowd behavior, and make investment plays against it. In no time, they became ‘the rage’ as aristocrats flaunted the exotic flowers as symbols of power and prestige… Though supplies could be increased only as fast as nature allowed, demand for tulip bulbs accelerated at a fevered pitch. Of course, these poor creatures have become metaphors for the herd mentality in humans. If this scene is being duplicated across the State (and Country), we are ALL about to find out in the next week or so. The “Lemming Effect” is an innate psychological phenomenon, a survival trait, an inborn instinct in the majority of people. into a conflicted northern Michigan business environment, we could be in for a serious reckoning that will affect everyone and everything we do, and soon. on
Day 143: The Lemming Effect. The Dutch learned this lesson the hard way. }(document, 'script', 'facebook-jssdk')); Our Hometown In popular culture, a longstanding myth holds that they commit mass suicide. out in droves. var js, fjs = d.getElementsByTagName(s)[0]; representation, expressed or implied, is made as to their accuracy. The Lemming Effect is a phenomenon wherein crowds of people, across various fields of life, exhibit a certain kind of behavior for no reason other than the fact that a majority of their peers do so”. So, who’s left to bid prices up? We’re seeing the same dynamic at work with trade policy. But was it really just the bar atmosphere or the “Lemming Effect” that brought fully informed (adults?) All information provided on the Investing Daily network of websites is If the company makes a good product that people will continue to need far into the future and its fundamentals are strong, you should consider making an investment. When investors are unanimously gloomy, prices can only go up. Is anybody really ready for another lockdown, empty shelves, business closings (many for good) etc.? Although expected it is painful to watch. John has decades of experience in the technology and political realms. Is anybody really ready for another lockdown, empty shelves, business closings (many for good) etc.? The numbers of virus cases have been creeping up and the driver is being attributed to the gradual reopening of business, travel, social gathering. These sites do not constitute a representation by the publisher or a solicitation for May 3, 2019 A disciplined contrarian investor is continually on the prowl for “out-of-favor” stocks. The United States and China this week are engaged in negotiations over tariffs. All Rights Reserved. The Lemming Effect is a phenomenon wherein crowds of people, across various fields of life, exhibit a certain kind of behavior for no reason other than the fact that a majority of their peers do so”. on
I drove by the same I75 overpass about 3 p.m. or so, still bumper to bumper, just moving quite a bit faster, and it’s only Friday…. A lemming is a disparaging term for an investor who exhibits herd mentality and invests without doing their own research, which often leads to losses. The Lemming Effect is a phenomenon wherein crowds of people, across various fields of life, exhibit a certain kind of behavior for no reason other than the fact that a majority of their peers do so”. DMCA NoticesNewspaper web site content management software and services. This mindset works in any sort of investment market because human nature is constant everywhere. Stick to your long-range investment goals. By
Should that wheel you’re hanging onto really be making all your decisions on the road? Remember: the producers at television news networks care about ratings, not your portfolio. Lots of explanations there, but it’s a lagging indicator, so we have to reserve hope on that front. — Bud Meyers, Grand Blanc Township. All counts are recorded in the county of residence of the person contracting the virus, so the data could be very deceptive and tracing that many people, stopping so many places, would be daunting. The sad fact is, most people (and that includes investors) are lemming-like followers, not independent thinkers. That’s why I adhere to contrary investing, a method that bucks the herd mentality. I can only think of 2 or 3 regular bad apples in that bunch, but everyone else (including myself at times) has the tenancy to follow the odd bonehead move . By
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DMCA NoticesNewspaper web site content management software and services. When everyone and his brother is buying stocks and dishing out hot stock tips, it’s a clear sign that a top is near. We offer a variety of FREE analysis delivered weekly to your inbox. The numbers of virus cases have been creeping up and the driver is being attributed to the gradual reopening of business, travel, social gathering. The numbers of virus cases have been creeping up and the driver is being attributed to the gradual reopening of business, travel, social gathering. wsmith@mihomepaper.com
The Lemming Effect is a phenomenon wherein crowds of people, across various fields of life, exhibit a certain kind of behavior for no reason other than the fact that a majority of their peers do so”. |
fjs.parentNode.insertBefore(js, fjs); Is anybody really ready for another lockdown, empty shelves, business closings (many for good) etc.? But was it really just the bar atmosphere or the “Lemming Effect” that brought fully informed (adults?) Lots of explanations there, but it’s a lagging indicator, so we have to reserve hope on that front. A company that’s benefiting from a lot of hyperbolic press coverage might have poor fundamentals and be ripe for a fall. However, as I looked at the I75 traffic from an overpass about 9AM Friday, I couldn’t help but think of the “Lemming Effect”. — Bud Meyers, Grand Blanc Township. Beware of “The Lemming Effect” ... Lemmings are small rodents that have been known to follow each other as they charge to their deaths into raging rivers or off cliffs. In the above passage by Mackay, substitute “tulip” for “collateralized debt obligations,” and you come to the sinking realization that nothing has changed over the last four centuries. }(document, 'script', 'facebook-jssdk')); Our Hometown For those of you that don’t know what the lemming effect is, I will tell you. Inevitably, a few individuals drown. ohtadmin
After the market crashed in 1637, bankrupting many, the era came to be known as ‘Tulipmania’ or ‘Tulipomania.’ ”.
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