Earnings Season Is Delivering More Pump Fakes Than LeBron James
- Stocks tending to fade after reporting, Bespoke notes
- Investors may want to avoid chasing shares trading higher
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The NBA playoffs isn’t the only place you can catch pump fakes these days.
The basketball fans at Bespoke Investment Group note a disconcerting trend that’s developed as companies release their quarterly results: a tendency for stocks to pop after reporting earnings, only to drop thereafter. That is, the initial reaction is akin to what’s referred to as a pump fake in basketball parlance.