Dash to Trash refers to a situation when the investors trading in the market flock to a class of securities or other assets, bidding up prices to beyond what can be justified by valuation or other fundamental measures. While it is known that the dash-to-trash effect can occur within any type of security, the phrase is typically used to describe the low-quality stocks and high-yield bonds, both of which can be subject to periods of overbuying in the markets.
As the name typically implies, that the investors are buying low-quality assets or those assets that do not correctly price in the risks associated with them. The dash to trash often occurs near the end of a prolonged bull market, when investors begin to seek higher returns regardless of the risks involved. The longer it has been since a market downturn, the more likely it becomes that large pockets of investors will feel bulletproof.