Chasing the market(redirected from Chases the Market)
Chasing the market
Purchasing a security at a higher price than expected because prices are rapidly climbing, or selling a security at a lower level when prices are quickly falling.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Chasing the Market
The act of making investment decisions based on market trends after those trends have been in place for quite some time. Chasing the market applies to both buying and selling securities. For example, one may buy a stock after it has already gone up in price considerably, and may already have become overvalued. Alternatively, one may sell the same stock after its downward trend has become well established and it may have already become undervalued. Chasing the market is closely related to both panic buying and panic selling and is usually considered an irrational investment strategy.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved