From hell in a handbasket to sunlit uplands, and back

After the highs and lows of the past five years, investors tend to hunt in packs. The herd mentality is stronger than ever, writes John Authers

Market Folly submits: Loosely defined, the hedge fund "herd mentality" is when various investment managers seemingly all invest in the same stocks. It's a trend that has occurred for years and is exemplified via Goldman Sachs' VIP list of stocks that are most commonly owned by hedge funds. It is the epitome of groupthink and can often lead to explosive situations.

Jason Zweig had an article up the other day making the case for automatic enrollment into 401ks and the like. The article was so-so but there was an interesting comment;"Forced savings," without a requirement to also study the subjects of personal finance and economics, reads like the plot line for a future disaster.

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.John Authers, FT’s Long View columnist, and Martin Wolf, FT’s chief economics commentator, on whether Mario Monti and Mario Draghi can save the eurozone.Click here or on the image below to watch the video.

Cullen Roche submits: This past summer I filmed this video (below) in Germany in the Englischer Gartens where a flock of sheep were grazing. What was distinct was that the sheep were grazing entirely on one side of the road and the grass was wearing thin as they moved ever closer to the edge of the road. The grass was noticeably more green and plentiful on the other side, however, none of the sheep ventured over.

By David Merkel: When I read this post by Ivan Hoff, I decided to look at the new high and new lows lists, which I never do now, but used to do regularly back in the days when I read a paper [Wall Street Journal] every day.

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.Greece’s second bailout has been agreed, but a leaked eurozone report suggests the heavily indebted country will need yet another. John Authers, FT’s Long View columnist, discusses with Martin Wolf, FT’s chief economics commentator, whether this latest package can possibly work.