Also known as: Herd mentality, Herd behavior, herd mentality
Loss aversion and herd mentality are both categorized as core cognitive biases in behavioral finance that influence investor decision-making, as evidenced by their frequent co-occurrence in research studies and conceptual models [1], [2], and [3]. They are both identified as common pitfalls that investors must understand to improve their financial outcomes and risk management strategies [4], [5]. — 8 supporting facts
The COVID-19 pandemic served as a catalyst for studying behavioral finance, where [1] links the event to the intensification of herd behavior, [2] notes its prevalence in market responses to the pandemic, and [3] highlights specific empirical findings regarding herding behavior across various stock markets during this period. — 3 supporting facts
Knowledge Tree
Knowledge Tree