Bandwagon Bias

a winnerBelieving that something is true only because other people think it is.

Whether politicians or stocks, people like being associated with things that are winning, so winners build momentum, not because they deserve it, but because they’re winning.

This is the foundation of all asset bubbles.

Open your eyes.  Watch out and decide for yourself.

Leave a Reply

Your email address will not be published. Required fields are marked *