Social factors impact investment decisions from "summary" of Irrational Exuberance by Robert J. Shiller
Investment decisions are not made in a vacuum. They are influenced by a myriad of social factors that can sway an individual's judgment and lead them to make decisions that may not necessarily be in their best financial interest. These social factors can range from the opinions of friends and family to the prevailing sentiment in the media. One of the key social factors that can impact investment decisions is the herd mentality. People have a tendency to follow the crowd, especially when it comes to making financial decisions. If everyone around them is investing in a particular asset or market, individuals may feel pressured to do the same, even if it goes against their better judgment. Moreover, social media has am...Similar Posts
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