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I came across an article talking about how a recent bison stampede got some folks worried about a super volcano eruption in Yellowstone National Park. The person filming the stampede suggested that since animals have certain instincts, the stampede could be a sign that the massive caldera (super volcano) may be about to erupt, which would be disastrous.

But according to a Yellowstone spokesman the bison were actually running into the park, meaning towards the super volcano.
 
There are valuable lessons for investors and advisors from this story.
 

  1. It’s not always a good idea to follow the herd mentality.
  2. Drawing catastrophic conclusions based on certain people running for the hills may cloud your thinking (think 2008/2009 stock market panic).
  3. You’d better know the end point for where the herd is heading (remember Sir John Templeton’s famous quote: “Buy when there’s blood in the streets.”)

 
The correct question may not be: What does the herd know? But rather, what does the person watching the herd know?
 
My best advice whether investing or visiting a National Park… Relax, take it all in, and don’t look for some story that isn’t really there.
 
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