Herd on the Street

"Hey, check out the Dukes over there. They must know somethiing. Let's get in on it."
--Floor trader (Trading Places)

Why is herding such a dominant social phenomenon? We see it in market behavior, where buyers are higher and sellers lower. We see it in fashion trends, political movements.

Some suggest it's in our genes. Survival instinct at work. Just as animals bunch together, we perceive strength in numbers.

But we're not like other animals. What separates us from other organisms is our sense of self-awareness. Reliance on our limbic systems is rarely necessary because we have the capacity for reason.

Reasoning permits us to process information and make rational choices. We are in charge if engage our brains. If we don't reason, then we are prone to follow others--thinking that they must 'know something.'

If our primary MO is to tag along with the pack, then we are destined to follow the herd over a cliff at some point.