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What Does 'Buy the Rumor Sell the News' Mean?

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Question: What Does 'Buy the Rumor Sell the News' Mean?
Answer: Buy the rumor, sell the news is something that happens in most markets, particularly financial. Sometimes traders trade based on what they believe will happen in a given economic report or event (the rumor). Once the event passes or the report is released (the news), they dump their positions and the market moves.

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