What is a Running Market?

Answer:
In the world of investing, when there is not enough

time or information, investors are prone to “run with the herd.” Information comes fast and furious in the stock market and investors often utilize the momentum of “running market” investing.

Many individual investors choose to “run with the herd” simply because there isn’t enough time for them to independently research stocks. Often, the herd utilizes subjective factors, rather objective factors, which determine the direction of the stock market.

If you choose to “run with the herd” -- you’ll be letting others determine investment decisions for you. And although money managers and portfolio managers are trained professionals, as an individual investor, you’ll want to keep a close eye on your investments; after all, it’s your money.