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Whenever I come across a story on "consumer confidence numbers" or some equivalent measure of psychological factors in the market, I cringe to think that such news can so drastically affect my carefully considered investments. I sat this week in my managerial economics class at Kellogg and heard about the dramatic effects of herding behavior even in mostly rational economic models. The gist of the lesson centered around the tendency to follow the masses when you have limited resources to fully evaluate a given problem.
I don't know why, since I'm totally ignorant of finance, but I kind of love Hunter Hillenmeyer's investment column.