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Buy the rumor, sell the news

Buy the rumor, sell the news
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Buy the rumor, sell the news

Buy the rumor, sell the news is a market adage based on the belief that stock prices move in anticipation of rumors and rebound when profit taking occurs after the actual news is released. It's a risky tactic of stock trading based on just rumors or moving events. The investor, who stands to make a nice profit on their stocks, then dumps positions as the news is announced. Kenny Polcari explains.