Impact of 'Animal Spirits' on Investment Behavior

Reported about 12 hours ago

In a recent discussion, Schwab Asset Management's CEO Omar Aguilar explored how emotional factors, termed 'animal spirits', influence investing decisions. He highlighted the herding instinct as a significant psychological tendency observed in market trends, particularly with the 'Magnificent Seven' stocks and cryptocurrencies. Aguilar emphasized that the fear of missing out (FOMO), often exacerbated by social media, drives many investors to act against fundamental economic reasoning.

Source: YAHOO

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