People, madly running, making a dash for their lives,
And you are unsure of what danger lurks around,
So, what would you do now? Would you likewise join in the great run?
Many say your chances of survival increase if you had run too,
Otherwise you could just be the only one that the lion sees,
So, it figures that in any group synchronized action, we place our trust,
And abdicate our discretion; for we herd, and that herding impulse, scientists say, is nature’s very own survival instinct wired into our brains.
Is herding rational? Is herding a conscious behaviour?
Is herding performed only when uncertainty prevails?
Ah! I couldn’t answer you for sure; for no two scientists agree on the same,
But I do know this for sure that when one puts his running shoes on,
It’s not the lion which he aims to outrun but those slow men who run last in the herd.
Buy bottoms and sell tops – so they say of assets in financial markets,
But everyone buys when others buy and everyone sells when others sell,
Is it any wonder then that most buy tops and sell bottoms to burn losses,
Like that person who puts on his shoes to avoid running last in the melee,
So too in the financial markets, the buyer looks out for a GREATER FOOL,
Buying something not because he believes its worth for the price, but rather because he believes that he will be able to sell it to someone else at an even higher price...
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