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Socionomics Summit Video: Bob Prechter Explains How Investors Herd
Mutual Fund Shareholders Show the Theory in Practice
By Robert Folsom
Tue, 28 Feb 2012 18:30:00 ET
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The idea of “herding” in financial markets sounds abstract — Does it show up in real-world investing? If so, how does it affect individual investors’ returns?

At the inaugural Socionomics Summit, Robert Prechter described the growing body of evidence for “The Fractal Nature of Herding.” During his presentation, Prechter gave the audience a devastating example of how herding appears among mutual fund shareholders and causes them deep harm, even when the fund itself is successful. 

Click the screen below for a two-minute excerpt. 

 
The context of this anecdote is a wealth of additional quantitative evidence that points to herding behavior among all major groups of investors. Prechter’s presentation — along with the eleven other scholars and researchers who addressed the conference — reflects the state of the art of the study of social mood.

This April 14, Robert Prechter will speak at the 2nd annual Socionomics Summit at the Georgia Tech Conference Center in Atlanta.

Last year’s event sold out, and tickets this year are selling quickly!

This emerging field is moving fast. If socionomics intrigues you, don’t miss this event. Reserve your seat now and save $50>>


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