LibraryScenariosHow social proof undermines your investment discipline
Scenario

How social proof undermines your investment discipline

I have been dollar-cost averaging into index funds for two years but just put my entire bonus into a meme stock because my coworker doubled his money.

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More people experience this than they realize.

What we've seen

Social comparison and availability bias can instantly override systematic investment strategies with anecdotal evidence of others' success.

Ideas that help explain it
Worth thinking about

“Where Are You with Behavioral economics — biases in financial decisions?”

If this sounds familiar, the Library can help you find the bigger picture.