Remember this when looking at the stock market. People do not just display some characteristics of herd animals. Human beings are herd animals in every sense of the term. Humans do have the capability to act independently but herd behavior is the default mode for all but a few of us. Each individual has the illusion of independent thought but in practice repeats group ideas.
Always keep in mind that you are a herd animal first and an independent entity only if you choose to be.
Group beliefs and thoughts consist largely of what make people feel comfortable and thus leave folks vulnerable to unpleasant surprises when reality suddenly imposes itself on the unsuspecting.
Be warned that the situation in the economy is much worse than is popularly imagined. Do not buy stocks here as a long term investment.