What is Back Up The Truck?
Back up the truck is 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.
Understanding 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 perform 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.
- Back up the truck is slang for purchasing a large position in a stock or other financial asset in hopes that its price will shoot up in the future.
- While it is rarely used now, the term was in vogue between 1999 and 2000.
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 on 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 sides 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 considerably less so than the time period from 1999 and 2000, which was the heyday of its most frequent usage.