DEFINITION of 'Back Up The Truck'

Slang that refers to the purchase of a large position in a stock or other financial asset by an investor or trader. Typically, when an individual is willing to back up the truck on a financial asset, this implies that he or she is extremely bullish on that asset's likely performance.

BREAKING DOWN 'Back Up The Truck'

For example, if an analyst recommends that it is time to start backing up the truck on XYZ stock, this means that he or she is extremely confident and upbeat about how well XYZ stock will be doing in the foreseeable future. "Backing up the truck" is a metaphor, that should conjure up an image of a truck backing into a warehouse or commercial building, where people scramble to load up the cargo hold with inventory that they believe has immense value. Like the metaphor, investor who thinks a stock is showing signs of a positive outlook, are apt to acquire as many shares as they can afford.

Situations where the term is used

While the term “back up the truck” might be uttered at a cocktail party, in a hush-hush manner, by an investor who believes he has a hot tip to discretely pass along to a friend, the term isn’t solely limited to those eager to tout an individual equity. The phrase is also commonly used by analysts who feel optimistic about a particular sector or assets class. Such an analyst might say: “I believe silver is an the verge of experiencing a major rally, and I urge investors to back up the truck on this commodity.” Typically the phrase is used to punctuate a recommendation, backed by statistical research. For example, if demand for gold bullion is on the climb, while the supply is dwindling, an analyst would deem the prospect of gold acquisition to be a “back up the truck” scenario.

The term “back up the truck” has also become a catchphrase among media personalities and investment bloggers, and is often featured in headlines, such as “My Expert Opinion: Back Up the Truck on 10-Year Treasury Notes”. Other influencers use the phrase to debate two side of a coin, e.g.: “Data Storage Stocks: To Back Up the Truck, or Not to Back Up the Truck?

Like most vernacular, the term “back up the truck” has declined in frequency, over time. Although the phrase is still used often, it is uttered considerable less so then the time period from 1999 and 2000, during the heyday of its most frequent usage.

RELATED TERMS
  1. Carrying Value

    An accounting measure of value, where the value of an asset or ...
  2. Declining Balance Method

    A common depreciation-calculation system that involves applying ...
  3. Asset Performance

    Asset performance refers to a business' ability to take operational ...
  4. Evening Up

    A slang phrase used to describe an investor who closes a position ...
  5. Dead Money

    Dead money is a slang term for money invested in a security with ...
  6. Don't Know - DK

    Don't Know (DK) is a slang expression for a disputed or rejected ...
Related Articles
  1. Small Business

    The Cost Of Starting A Food Truck

    The growing popularity of food trucks means that the costs of starting one up will only continue to rise.
  2. Investing

    Tesla to Develop Services Business From Truck: Analyst

    Analysts from Morgan Stanley have a couple of thoughts on Tesla's foray into the trucking industry.
  3. Managing Wealth

    The 4 Best Cities to Open a Food Truck in the US

    Learn what characteristics indicate a good city for opening a food truck, and identify specific U.S. cities that fit these characteristics.
  4. Tech

    Tesla to Unveil Semi Truck on Thursday

    Tesla's long-haul, electric semi truck can reportedly drive itself and move in "platoons."
  5. Investing

    Tesla's Electric Truck Meets Early Success

    The Silicon Valley automaker has received at least 140 pre-orders for its new electric semi.
  6. Investing

    The 'Chicken Tax' and Why It Affects Which Pickup You Can Buy

    Talk at this month's Detroit Auto Show talk focused on how the "chicken tax" keeps foreign-made trucks out of the U.S.
  7. Investing

    Tesla Could Be Biggest Catalyst in Trucking in Decades: Morgan Stanley

    Morgan Stanley analysts predict that Tesla’s stock will receive a big boost when the company unveils its semi-truck later this month.
  8. Investing

    Celadon Builds New Corporate Headquarters (CGI)

    After the Federal government slapped $1.8 billion in regulatory costs on the trucking industry, this Indianapolis-based firm is relocating from the city.
  9. Investing

    The Production Possibility Frontier (PPF)

    A production possibility frontier (PPF) is a range of answers to the question, “What is our maximum production capacity?”
  10. Investing

    Tesla Surprises With New Supercar at Semi Truck Unveiling

    Tesla stunned attendees by unveiling a record-breaking sports car alongside its electric semi truck.
RELATED FAQS
  1. What is the difference between a long position and a call option?

    Learn what a long position in a stock is, what a call option is, and the difference between owning shares of a company and ... Read Answer >>
  2. Why isn't the U.S. dollar worth more than the British pound?

    When one country's currency is worth more than another, it does not necessarily indicate a stronger economy. Here's why. Read Answer >>
  3. The share price and company's secondary offering

    When a company increases the number of shares issued through a secondary offering, it generally has a negative effect on ... Read Answer >>
  4. What is a "Wash Sale"?

    The Wash-Sale rule was established to forbid a loss deduction of a security sold. Read Answer >>
  5. How is asset turnover calculated?

    Learn what the asset turnover ratio is, how it can be used to compare companies in the same sector, and how the ratio is ... Read Answer >>
  6. The difference between fixed and current assets

    Learn the differences between fixed assets such as land and current assets such as cash, and how these types of assets appear ... Read Answer >>
Hot Definitions
  1. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  2. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  3. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  4. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  5. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  6. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
Trading Center