herd investment

herd investment
n.
An investment based on what other people or institutions are investing rather than on rational analysis.
Example Citation:
Groupthink and herd investment encouraged money-center banks, pension fund managers and credit rating agencies in the United States, Japan and elsewhere to overlook the obvious signs of the corruption, mismanagement and chicanery among their borrowers.
—Jim Hoagland, "Asia—One for the Wizards," The Washington Post, January 11, 1998
Earliest Citation:
Crash Hewat points out that shares, despite the crash, provided investors with average returns of 25 per cent in the second half of the 1980s.
He believes in a contrarian approach to share investment, in other words avoiding herd investments.
—T. Skotnicki, "Stockmarket is still the place to put your money," Herald, August 31, 1990
Related Words: Category:

New words. 2013.

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