Buy the Rumor, Sell the Fact

Buy the Rumor, Sell the Fact

A catchphrase meaning that positive rumors about a company often cause stock prices to rise (because of increased buying on the part of investors), but then the prices fall (because of increased selling) after actual reports do not bear out the rumors.
References in periodicals archive ?
currency fell against the yen under the rule "buy the rumor, sell the fact" after Prime Minister Shinzo Abe's ruling coalition achieved a landslide victory in Sunday's upper house election as widely expected.
"There is some 'buy the rumor, sell the fact' selling going on.
"Buy the rumor, sell the fact," Ashraf Akhnoukh from CIBC brokerage told Reuters.
In his book Buy the Rumor, Sell the Fact, (see Lasting Words in this issue), Michael Maiello explains that the saying predicts that there will be a bounce in the stock market during the last five days of trading before the year ends or the first two trading days of January.
"Buy the rumor, sell the fact." This is the motto on trading floors all across the globe.
With the expected election result, traders moved to sell the dollar under the axiom of "buy the rumor, sell the fact," dealers said.