Put another way, we often depend on the recommendations of others for, say, restaurants, movies, doctors, or accountants; when all your friends report favorably on one, there’s a pretty good chance that the recommendation is valid. Finance, though, for the reasons explained above, is the exact opposite; when all your friends are enthusiastic about stocks (or real estate, or any other investment), perhaps you shouldn’t be, and when they respond negatively to your investment strategy, that’s likely a good sign.
