The power of social proof (or how ‘herd behaviour’ can drive investment bubbles and busts)

By Fidelity International (reproduced with permission) Social proof is when people follow the actions of others in an attempt to reflect the “correct” behaviour for a given situation. This urge to conform to established patterns or to follow the lead of perceived authority figures, trendsetters or simply people “in the know” is the social glue[…]