Rate of Developing Bull Market Trend Could Be Precursor to Buyer’s Panic
A series of unusual U.S. stock market conditions have created “upside risk” – i.e., the possibility of “panic buying.” The definitions of each are:
Upside Risk: “The extent to which the value of a security or other investment may increase beyond forecast levels.” (Financial Times; Online Lexicon)
Panic Buying: “A flurry of security purchases accompanied by high volume and sharp price increases. During a period of panic buying, buyers do not have time to evaluate fundamental or technical factors because their primary goal is to acquire securities before the prices rise even more.” (“Wall Street Words: An A to Z Guide to Investment Terms for Today’s Investor” by David L. Scott. Copyright © 2003 by Houghton Mifflin Company.)
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