Conventional Quote by John Maynard Keynes
“A conventional valuation which is established as the outcome of the mass psychology of a large number of ignorant individuals is liable to change violently as the result of a sudden fluctuation of opinion due to factors which do not really make much difference to the prospective yield; since there will be no strong roots of conviction to hold it steady.”
About This Quote
Source Book: The General Theory of Employment, Interest and Money, 1936
Market prices can swing wildly when driven by uninformed crowd sentiment lacking solid fundamentals.
In simple terms: Prices shift when crowds act without strong convictions.
Key Takeaway
Beware herd mentality in markets.
Themes
economics
psychology
volatility
Mood
analytical
cautious
Type
theoretical
practical
When to use this quote
- stock investing
- real estate pricing
- cryptocurrency markets
- policy making
Key Concepts
mass psychology
valuation
market dynamics
Questions to Reflect On
- What safeguards can reduce herd-driven volatility?
- How to identify truly solid fundamentals?
A Different Perspective
Fundamentals may still dominate long term despite short-term swings.
