HERD INVESTMENT

n.

An investment based on what other people or institutions are investing rather than on rational analysis.

Groupthink andherd investmentencouraged 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

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 avoidingherd investments.

—T. Skotnicki, "Stockmarket is still the place to put your money,"Herald, August 31, 1990

pump and dump

sheeple

vice investing

Stock Market and Investing