Herding: Why People Move Together Even When They Shouldn’t

The Risk Manager’s Guide to Money

0:00 6:41

In this episode

Humans are wired to follow the crowd — but in markets, that instinct becomes dangerous. In this episode, we explore the psychology of herding, from social proof and information cascades to FOMO and panic selling. You’ll learn why crowds amplify volatility, how bubbles form, and why fear spreads faster than opportunity. Understanding herding is essential for anyone navigating markets or major financial decisions.