You've described the very definition of the "greater fool theory" [1]. This is investing based on momentum rather than value (such as the price to earnings rati

You've described the very definition of the "greater fool theory" [1]. This is investing based on momentum rather than value (such as the price to earnings ratio). The intent is to sell to another "fool" after mading a profit. Of course it all comes tumbling down when the market runs out of fools [2]. [1] http://en.wikipedia.org/wiki/Greater_fool_theory http://en.wikipedia.org/wiki/Greater_fool_theory [2] http://en.wikipedia.org/wiki/Tulip_mania http://en.wikipedia.org/wiki/Tulip_mania