Buzzword of the Week: Graveyard Market

How about a little gallow humore for this week’s buzzword, found on the Investopedia website? A Graveyard Market marks the period near the end of a prolonged bear market . In a graveyard market, long-time investors have taken large losses, while new investorgraveyard part-time cfo northern virginias prefer to stay liquid by sitting on the sidelines and keeping their money in cash or cash-equivalent securities until market conditions improve.

The term graveyard market is an apt description of this market phenomenon: the investors in a graveyard market can’t get out of it, and the investors who aren’t in it don’t want to be. Therefore, until a positive outlook becomes more conclusive, the overall market conditions will be slow to improve.

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