Herding. All stock market prices are both the cause and result of herding behavior amongst investors.
Our gut needs training. Many of our instinctive feelings are the exact opposite of what we should be doing.
As an individual investor I have to recognize that I am unlikely to think of something the brains of Wall Street haven’t thought of, or see things the brains of Wall Street have missed, or have insights they don’t possess.
The greatest failing of most investors, both professional money managers and individual investors, is a failure to understand the impact of their own very human behavior and that of stock market participants as a whole.