When investors expect that prices will continue to rise, what action do they typically take?

When investors anticipate that prices will continue to rise, their typical reaction is to buy additional investments. This behavior is driven by the expectation of future gains; when investors believe that an asset's price will increase, purchasing more of that asset allows them to capitalize on the expected appreciation. By integrating more assets into their portfolio at current prices, they position themselves to benefit from the future increase in value.

This mindset is supported by the principles of demand and supply in financial markets, where bullish sentiment leads to higher investment activity. Investors are more likely to invest additional capital into assets they believe will yield further profits, reinforcing the trend of rising prices.

The other actions, such as selling investments, holding them, or engaging in short selling do not align with the logic of capitalizing on expected price increases. Selling would involve a belief that the price may decline or that gains should be locked in, holding might indicate indecision, and short selling is a strategy used when investors expect a decline in asset prices, which contradicts the premise of expecting rising prices.