What does "Buy the rumours, sell the facts" mean?

Question

What does the saying "buy the rumours, sell the facts mean?" I was told it by my commerce teacher. We were talking about shares, but i also dont know if that saying is in relation to shares only or in general life.

please help everyone.

Thanks

Answer 1

it means its okay to listen to rumors or gossip but dont talk about it unless we are sure its true

Answer 2

This is a stock market saying.

When there are rumors, like if a Democrat is elected, solar energy will boom, people drive up the price of solar stocks.  Or, some people speculate the other way.  But in any case, there is a lot of trading going on because of what people think will happen in the future.

When the future arrives, then there is no more speculation, so the game is over.  If the stock went up, people sell to take their profits.  If the stock went down, people sell to stop taking more losses and chase something else.

In real life, a conservative person would buy on facts, and sell on facts.  Would you prefer to marry someone because there was a rumor they would be a good partner, or because you knew they would be a good partner?