LibraryScenariosWhy crowd panic makes smart people make dumb decisions
Scenario

Why crowd panic makes smart people make dumb decisions

I liquidated half my portfolio when the market crashed because everyone on social media was saying this was different and the end was coming.

Zera
Online
The coach is replying

More people experience this than they realize.

What we've seen

Social contagion of fear can override individual knowledge and discipline, turning temporary market volatility into permanent portfolio damage.

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.