--- title: "Meaning & Key Takeaway of: A conventional valuation which is…" description: "\"A conventional valuation which is established as the outcome of the mass psychology of a large number of ignorant individuals is liable to change viole..." image: "https://sms4smile.com/quotes/i/4a1/john-maynard-keynes-1380_conventional_a-conventional-valuation-which-is-establ_771829.jpg" --- # A conventional valuation which is established as the… ![“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…” quote by John Maynard Keynes](https://sms4smile.com/quotes/i/4a1/john-maynard-keynes-1380_conventional_a-conventional-valuation-which-is-establ_771829.jpg) [Download](https://sms4smile.com/quotes/i/4a1/john-maynard-keynes-1380_conventional_a-conventional-valuation-which-is-establ_771829.jpg) [Open image](https://sms4smile.com/quotes/i/4a1/john-maynard-keynes-1380_conventional_a-conventional-valuation-which-is-establ_771829.jpg) > “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.” [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. 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. ★ ★ ★ ★ ★ No ratings yet [Conviction](https://sms4smile.com/quotes/about/conviction/) [Customer](https://sms4smile.com/quotes/about/customer/) [Differences](https://sms4smile.com/quotes/about/differences/) [Fluctuation](https://sms4smile.com/quotes/about/fluctuation/) [Individual](https://sms4smile.com/quotes/about/individual/) [Large numbers](https://sms4smile.com/quotes/about/large-numbers/) [Mass](https://sms4smile.com/quotes/about/mass/) [Opinion](https://sms4smile.com/quotes/about/opinion/) [Psychology](https://sms4smile.com/quotes/about/psychology/) [Roots](https://sms4smile.com/quotes/about/roots/) [Strong roots](https://sms4smile.com/quotes/about/strong-roots/) [Valuation](https://sms4smile.com/quotes/about/valuation/) ## Related quotes > [Until there are tangible metrics for quantifying the real value of a token's utility, the gap between value and valuation will continue to defy…](https://sms4smile.com/quotes/william-mougayar/until-there-are-tangible-metrics-for-quantifying-the-real-value-of-a/) [William Mougayar](https://sms4smile.com/quotes/author/william-mougayar/) > [The enthusiasm for Tesla and other bubble-basket stocks is reminiscent of the March 2000 dot-com bubble. 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Its importance has been enormously increased by the growth of…](https://sms4smile.com/quotes/bertrand-russell/i-think-the-subject-which-will-be-of-most-importance-politically-is-2/) [Bertrand Russell](https://sms4smile.com/quotes/author/bertrand-russell/) > [“This now leads us to elucidate more precisely the error of the idea that the majority should make the law, because, even though this…](https://sms4smile.com/quotes/ren-gu-non/this-now-leads-us-to-elucidate-more-precisely-the-error-of-the-idea/) [René Guénon](https://sms4smile.com/quotes/author/ren-gu-non/) > [If you can influence the leaders, either with or without their conscious cooperation, you automatically influence the group which they sway. 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Alder](https://sms4smile.com/quotes/author/shannon-l-alder/) > [“A small tree with strong roots will outlive a big tree with weak ones.”](https://sms4smile.com/quotes/matshona-dhliwayo/a-small-tree-with-strong-roots-will-outlive-a-big-tree-with-weak-ones/) [Matshona Dhliwayo](https://sms4smile.com/quotes/author/matshona-dhliwayo/) > [Unless you have strong roots in films, music, art, painting, or theatre, you can't talk high and think internationally.](https://sms4smile.com/quotes/shabana-azmi/unless-you-have-strong-roots-in-films-music-art-painting-or-theatre/) [Shabana Azmi](https://sms4smile.com/quotes/author/shabana-azmi/) > [“trees with strong roots bear delicious fruits.”](https://sms4smile.com/quotes/srinivas-shenoy/trees-with-strong-roots-bear-delicious-fruits/) [Srinivas Shenoy](https://sms4smile.com/quotes/author/srinivas-shenoy/) ## More by John Maynard Keynes > [Once we allow ourselves to be disobedient to the test of an accountant's profit, we have begun to change our civilization.](https://sms4smile.com/quotes/john-maynard-keynes/once-we-allow-ourselves-to-be-disobedient-to-the-test-of-an/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [If you owe your bank manager a thousand pounds, you are at his mercy. If you owe him a million pounds, he is at…](https://sms4smile.com/quotes/john-maynard-keynes/if-you-owe-your-bank-manager-a-thousand-pounds-you-are-at-his-mercy/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.](https://sms4smile.com/quotes/john-maynard-keynes/there-is-no-subtler-no-surer-means-of-overturning-the-existing-basis/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [It has been pointed out already that no knowledge of probabilities, less in degree than certainty, helps us to know what conclusions are true,…](https://sms4smile.com/quotes/john-maynard-keynes/it-has-been-pointed-out-already-that-no-knowledge-of-probabilities/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [Everything is always decided for reasons other than the real merits of the case](https://sms4smile.com/quotes/john-maynard-keynes/everything-is-always-decided-for-reasons-other-than-the-real-merits/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [In the long run we are all dead.](https://sms4smile.com/quotes/john-maynard-keynes/in-the-long-run-we-are-all-dead/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [The power of vested interests is vastly exaggerated compared with the gradual encroachment of ideas](https://sms4smile.com/quotes/john-maynard-keynes/the-power-of-vested-interests-is-vastly-exaggerated-compared-with-the/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [It is a good thing to make mistakes so long as you're found out quickly.](https://sms4smile.com/quotes/john-maynard-keynes/it-is-a-good-thing-to-make-mistakes-so-long-as-you-re-found-out/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [When the accumulation of wealth is no longer of high social importance, there will be great changes in the code of morals. We shall…](https://sms4smile.com/quotes/john-maynard-keynes/when-the-accumulation-of-wealth-is-no-longer-of-high-social/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [Of the maxims of orthodox finance none, surely, is more anti-social than the fetish of liquidity, the doctrine of that it is a positive…](https://sms4smile.com/quotes/john-maynard-keynes/of-the-maxims-of-orthodox-finance-none-surely-is-more-anti-social/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable…](https://sms4smile.com/quotes/john-maynard-keynes/the-outstanding-faults-of-the-economic-society-in-which-we-live-are/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [I conceive, therefore, that a somewhat comprehensive socialisation of investment will prove the means of securing an approximation to full employment.](https://sms4smile.com/quotes/john-maynard-keynes/i-conceive-therefore-that-a-somewhat-comprehensive-socialisation-of/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.](https://sms4smile.com/quotes/john-maynard-keynes/capitalism-is-the-astounding-belief-that-the-most-wickedest-of-men/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [Economics is a very dangerous science.](https://sms4smile.com/quotes/john-maynard-keynes/economics-is-a-very-dangerous-science/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [Whenever you save five shillings you put a man out of work for a day.](https://sms4smile.com/quotes/john-maynard-keynes/whenever-you-save-five-shillings-you-put-a-man-out-of-work-for-a-day/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) [Explore all 246 John Maynard Keynes quotes ](https://sms4smile.com/quotes/author/john-maynard-keynes/) ## More Conventional quotes > [Whether you are buying a car or casting a ballot, choosing a job or planning a family, follow your moral compass. Don't let others…](https://sms4smile.com/quotes/denis-hayes/whether-you-are-buying-a-car-or-casting-a-ballot-choosing-a-job-or/) [Denis Hayes](https://sms4smile.com/quotes/author/denis-hayes/) > [A language possesses utility only insofar as it can construct conventional boundaries. A language of no boundaries is no language at all, and thus…](https://sms4smile.com/quotes/ken-wilber/a-language-possesses-utility-only-insofar-as-it-can-construct/) [Ken Wilber](https://sms4smile.com/quotes/author/ken-wilber/) > [Conventional agriculture has never succeeded in feeding the world, and it's never produced anything good to eat. For the future, we need to look…](https://sms4smile.com/quotes/dan-barber/conventional-agriculture-has-never-succeeded-in-feeding-the-world-and/) [Dan Barber](https://sms4smile.com/quotes/author/dan-barber/) > [Contrarian thinking at its best simply asks, Is this really true? It speaks up when the politically correct answer or the conventional wisdom doesn't…](https://sms4smile.com/quotes/larry-osborne/contrarian-thinking-at-its-best-simply-asks-is-this-really-true-it/) [Larry Osborne](https://sms4smile.com/quotes/author/larry-osborne/) > [Because investors are not usually penalized for adhering to conventional practices, doing so is the less professionally risky strategy, even though it virtually guarantees…](https://sms4smile.com/quotes/seth-klarman/because-investors-are-not-usually-penalized-for-adhering-to/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [My father was in real estate, banking, and land management. As family life, it was very conventional, happy, and comfortable. We weren't wealthy, but…](https://sms4smile.com/quotes/julia-child/my-father-was-in-real-estate-banking-and-land-management-as-family/) [Julia Child](https://sms4smile.com/quotes/author/julia-child/) > [Our Christian faith is actually very subversive of the conventional notion of success - the notion that what invests a person with worth is…](https://sms4smile.com/quotes/desmond-tutu/our-christian-faith-is-actually-very-subversive-of-the-conventional/) [Desmond Tutu](https://sms4smile.com/quotes/author/desmond-tutu/) > [I think you will learn to be natural with me, as I find it impossible to be conventional with you](https://sms4smile.com/quotes/charlotte-bronte/i-think-you-will-learn-to-be-natural-with-me-as-i-find-it-impossible/) [Charlotte Bronte](https://sms4smile.com/quotes/author/charlotte-bronte/) > [What's different now is that while political leaders used to give talking points to talk radio, now talk-radio hosts are giving talking points to…](https://sms4smile.com/quotes/john-avlon/what-s-different-now-is-that-while-political-leaders-used-to-give/) [John Avlon](https://sms4smile.com/quotes/author/john-avlon/) > [Some days, I think maybe we should try and be a little more conventional, but every time I try, I fail, so I'm learning…](https://sms4smile.com/quotes/seinabo-sey/some-days-i-think-maybe-we-should-try-and-be-a-little-more/) [Seinabo Sey](https://sms4smile.com/quotes/author/seinabo-sey/) > [The vision of extraordinary achievement is,by definition, a few steps beyond consensus and conventional logic](https://sms4smile.com/quotes/scott-belsky/the-vision-of-extraordinary-achievement-is-by-definition-a-few-steps/) [Scott Belsky](https://sms4smile.com/quotes/author/scott-belsky/) > [“Can you make me remember the conventional way?”](https://sms4smile.com/quotes/jodi-ellen-malpas/can-you-make-me-remember-the-conventional-way/) [Jodi Ellen Malpas](https://sms4smile.com/quotes/author/jodi-ellen-malpas/) > [Nobody can live in society without conventions. The reason why sensible people are as conventional as they can bear to be is that conventionality…](https://sms4smile.com/quotes/george-bernard-shaw/nobody-can-live-in-society-without-conventions-the-reason-why/) [George Bernard Shaw](https://sms4smile.com/quotes/author/george-bernard-shaw/) > [Currency speculation-over a trillion dollars a day-is a tax-free activity. The notion of a tax on "day trades" or other speculative swaps was revived…](https://sms4smile.com/quotes/eric-kierans/currency-speculation-over-a-trillion-dollars-a-day-is-a-tax-free/) [Eric Kierans](https://sms4smile.com/quotes/author/eric-kierans/) > [Fear is a problem with film music and films; people want to be conventional, and there's more commercialism today. If you are not daring…](https://sms4smile.com/quotes/alex-north/fear-is-a-problem-with-film-music-and-films-people-want-to-be/) [Alex North](https://sms4smile.com/quotes/author/alex-north/) Browse all 742 Conventional quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "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.", "creator": { "@type": "Person", "name": "John Maynard Keynes" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/john-maynard-keynes/a-conventional-valuation-which-is-established-as-the-outcome-of-the/", "about": { "@type": "Thing", "name": "Conventional" }, "@id": "https://sms4smile.com/quotes/john-maynard-keynes/a-conventional-valuation-which-is-established-as-the-outcome-of-the/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/4a1/john-maynard-keynes-1380_conventional_a-conventional-valuation-which-is-establ_771829.jpg", "contentUrl": "https://sms4smile.com/quotes/i/4a1/john-maynard-keynes-1380_conventional_a-conventional-valuation-which-is-establ_771829.jpg", "url": "https://sms4smile.com/quotes/i/4a1/john-maynard-keynes-1380_conventional_a-conventional-valuation-which-is-establ_771829.jpg", "width": 1080, "height": 1080, "caption": "“A conventional valuation which is established as the outcome of the mass psychology of a large number of…” — John Maynard Keynes", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "John Maynard Keynes", "item": "https://sms4smile.com/quotes/author/john-maynard-keynes/" }, { "@type": "ListItem", "position": 4, "name": "A conventional valuation which is established...", "item": "https://sms4smile.com/quotes/john-maynard-keynes/a-conventional-valuation-which-is-established-as-the-outcome-of-the/" } ], "@id": "https://sms4smile.com/quotes/john-maynard-keynes/a-conventional-valuation-which-is-established-as-the-outcome-of-the/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```