Don't Follow the Investing Crowd

Posted March 27, 2023

Dear Outsider,

On a warm, dark evening, I snapped a leash on my hound dog and took her out into the Baltimore night for a long walk around the neighborhood.

We crested a small hill and walked for a few paces.

Then something made me stop in my tracks.

Four pairs of eyes were glinting in the moonlight.

My dog hadn’t noticed them yet, but I stood perfectly still, staring at three does and one buck.

They were less than 100 feet away.

Once the hound caught their scent, she stood straight as an arrow, one paw in the air with her tail pointed directly forward.

In my nearly 10 years in the city, I can safely say it’s extremely uncommon to see a herd of deer, especially with a buck, and especially this close.

We stood staring until my dog made a quick jerk toward them — like she'd ever be able to catch them — and they bolted.

But they didn’t run away…

They ran straight at us.

They rushed past in the surreal twinkling moonlight, so close I could have reached out and touched them.

But as they reached the road, one doe made a quick decision and veered off to the left. Maybe she was scared or lost.

The other three ran down the sidewalk through the Baltimore backyards and disappeared into the night.

Instead of following the rest of the herd, the lone doe jumped over a guardrail and down into the woods to the safest place in her field of view.

I knew below that section of woods was a steep drop-off, but if she timed the jump right, she’d be OK.

The other deer had to run through the houses, backyards, and city streets to get to safety.

I’m sure they all ended up in the same place eventually.

But for a time, the lone wolf went its own way.

It didn’t follow the pack and had to make it on its own.

The Psychology of Crowds

Today, we’re at an inflection point in the stock market.

In the dead of the night, which way do we turn?

Do we follow the crowd or choose our own path?

Here at the Outsider Club, we don’t like to follow the crowd.

History shows that time and again, following the crowd leads to bad outcomes.

That’s because humans are prone to be influenced by others.

Humans are social beings who gain a sense of meaning and purpose from their peers.

We get satisfaction from our social identity.

Another reason we follow crowds is because humans are easily influenced into thinking others have more expertise.

Then there’s groupthink, where a group makes a rash decision without evaluating all the options.

It’s why TikTok has exploded in popularity.

But it’s also why social media in general poses an existential risk to society.

In the end, social media and Big Tech will ruthlessly turn on you.

Google, the once-gold standard for a hip workplace, just fired thousands of employees via email with no explanation.

Congress has exposed the evils of TikTok in a hearing this week.

When Rep. Dan Crenshaw grilled TikTok CEO Zi Chew about the dangers of the app, he said:

You may not care that your data’s being accessed now, but it will be one day when you do care about it. And here’s the real problem: With data comes power. They can choose what you see and how you see it. They can make you believe things that are not true. They can encourage you to engage in behavior that will destroy your life. Even if it’s not happening yet, it could in the future.

So whatever you do, don’t be influenced by the yahoos on social media.

After all, there’s a reason they call them “influencers.”

Sure, not following the crowd involves risks.

At the Outsider Club, sometimes we make mistakes.

We’re not perfect.

But we stand alone in a sea of nonsense because we think outside the box.

When we come into the office, we’re greeted by the infamous picture of Tiananmen Square to remind us that one person has the power to stand up to tyranny.

You won’t see us mindlessly scrolling through social media on our phones that are made with slave labor.

You won’t see us riding around town in a Tesla that’s just as bad if not worse for the environment than a regular car.

We see through the smog.

And there's something else the crowd hasn’t caught on to yet...

American-Made "Blue Gas"

It might be hard to believe, but it’s something I’ve said many times before.

Electric cars may become a thing of the past...

Which is crazy since they’re relatively new.

But thanks to a new discovery known as “Blue Gas,” electric cars (like Tesla) are about to become obsolete.

That’s because this strange “Blue Gas” doesn’t produce any emissions.

Zero, nada, zilch.

And it fills cars up in minutes, not hours.

Experts are predicting that in the next few years, there will be more than 10 million “Blue Gas” vehicles on the road...

Bloomberg even said “Blue Gas” will “skyrocket 1,000 times over.”

And the tiny company driving the “Blue Gas” industry is primed to absolutely shatter any gains ever paid out by Tesla.

So there’s no time to wait. The time to get in is NOW.

Don’t follow the herd...

Learn all the details about this stock before it goes from a few dollars to $350 in the coming months.

Stay frosty,

Alexander Boulden
Editor, Outsider Club

After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing. Check out his editor's page here.

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