Dash To Trash

Categories: Trading, Metrics

Hey, let's jog on over to our local landfill. Plastic City. Car Tire County? Maybe.

Eh, ok...so a dash to trash occurs when investors rush to buy a particular security that has fallen, or is perceived as...crappy. They bid up the prices well beyond the company’s valuation or other metrics, and it more often happens to low-quality stocks and high-yield bonds. A dash can occur after a long bull market, where investors aren’t as worried about the risks involved.

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