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herding behavior

HER-ding beh-HAY-vyer

ˈhɜːrdɪŋ bɪˈheɪvjər

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Syllable breakdown

herdingbehavior

Dictionary meaning

tendency of investors to follow and mimic the actions of a larger group rather than acting on independent analysis; contributes to market bubbles when investors pile into rising assets and to crashes when panic selling spreads; partly rational (exploiting others' information) and partly psychological (fear of missing out)

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