This is herding. And there’s evidence that it’s becoming more and more common in markets. The correlations in the price movements between different stocks and different types of assets are becoming sharper and sharper,76 suggesting that everybody is investing in a little bit of everything and trying to exploit many of the same strategies. This is another of those Information Age risks: we share so much information that our independence is reduced. Instead, we seek out others who think just like us and brag about how many “friends” and “followers” we have. In the market, prices may occasionally
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