Finanza in inglese – lezione 26

Impara gratuitamente inglese

Finanza in inglese – lezione 26

Buy the rumor and sell the news

This adage reminds us that rumors can drive a rally or a sell-off in a stock. People speculate on the impact of a rumor, and this speculation gets baked into the stock’s price. If the rumor is proven to be true, then the impact might already be reflected in the price. If the rumor isn’t true, then the stock is still likely affected. In short, remember that stocks often move on speculation and then adjust when the news is official.

Be fearful when others are greedy and greedy only when others are fearful

There are long-term uptrends and downtrends but at a certain point the market pendulum will change direction. Timing is difficult but it is worth noticing when a company can seemingly do no wrong or do nothing right. During these times, think like a contrarian and don’t become complacent.

This expression is counter to the idea that “the trend is your friend,” but it is really more of a reminder that every trend will ultimately end, and it often seems to happen just when it feels like it will go on forever.

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Pietro Di Lorenzo