Buy The Rumour Sell The News

In the context of investing, the phrase "buy the rumour, sell the news" suggests that if positive news is expected in the future, the price will often increase higher in anticipation of that date, but not always after.

The price of anything moves in the market in expectation of something happening – the rumour. Most people who wish to own the stock or currency have already done so by the time the event occurs. This indicates that when the catastrophe happens, there will be no one left to buy and the price will continue to rise. This causes people to sell in order to cash in on their gains.

Similarly, if favourable news is released and a stock or other asset falls as a result, traders will claim that "the knowledge was already baked in." They're alluding to the fact that the price increase occurred prior to the announcement, thus the asset's price already reflects the impact of the good news.
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