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

    Carrying value is an accounting measure of value, where the value ...
  2. Beating The Gun

    Beating the gun is a slang phrase used when an investor purchases ...
  3. Market Is Up

    The phrase "market it up" means the stock, bond, or commodity ...
  4. Take a Report

    Take a report is a slang expression used by traders to signify ...
  5. Asset-Conversion Loan

    An asset-conversion loan is a short-term loan that is typically ...
  6. In The Pink

    In the pink is a slang expression used to mean a state of good ...
Related Articles
  1. 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.
  2. Investing

    Tesla's Electric Truck Meets Early Success

    The Silicon Valley automaker has received at least 140 pre-orders for its new electric semi.
  3. 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.
  4. 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.
  5. Investing

    Tesla Semis Hit The Road with First Cargo

    Tesla's big rigs are slated for mass production next year, and they're already attracting major interest.
  6. Investing

    Tesla Partners for Electric Truck Charging Stations

    Tesla is collaborating with Anheuser-Busch, PepsiCo and UPS for new electric charging stations.
  7. Investing

    Fidelity's Mattingly: Demand for Pickups, SUVs Should Drive US Car Makers

    The demand for pickups and SUVs should drive the U.S. auto industry, according to Fidelity Investments fund manager Elliot Mattingly.
  8. Insights

    Schneider National Will Begin Trading Today

    Schneider National's successful IPO is a positive sign for the trucking industry, which is struggling with depleting profits and revenues.
  9. Investing

    Allison Transmission - Great Share, But A Lot Of Debt And Cyclicality

    Allison is uncommonly profitable, but also saddled with sizable debts.
  10. Personal Finance

    Wait on Buying a Pickup (F, GMC)

    Used car prices are dropping everywhere. But if you're in the market for a pickup truck, a good bargain is less of a guarantee – thanks to strong demand.
RELATED FAQS
  1. Where did the phrase "pork barrel" come from?

    Learn what the phrase "pork barrel" means and the time period it originated from. Discover how it has become associated with ... Read Answer >>
  2. How do fixed assets and current assets differ?

    Current assets can be converted into cash in less than one year, while fixed assets are long-term physical assets. Read Answer >>
  3. Is the banking sector a good choice for value investing?

    Find out why the banking sector is attractive to value investors, who typically look to buy discounted stocks during times ... Read Answer >>
Trading Center