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

Example Citations:
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

“Humans feel safe in numbers,” Ms Wilks says. “We seek confirmation of our decisions and comfort in all our choices.” She says newspapers often spur the herd investment mentality.
—Lucinda Schmidt, “Follow the flock and risk being fleeced,” The Age (Melbourne, Australia), February 11, 2002

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: