There's a lot of bollocks in the finance industry, as highlighted by a recent Henry Blodget article on the Business Insider website in the US entitled "16 meaningless market phrases that will make you sound smart on CNBC".
Blodget is Business Insider's suitably irreverent CEO and a former Merrill Lynch equities analyst banned from the securities industry for writing emails at the height of the tech boom containing stock views that conflicted with what the company had published.
In his article, he explains that sounding smart in finance without committing to anything at all is quite an art.
The core of it, as any experienced financial commentator will tell you, is to demonstrate your decades of experience compared with the common man while, at the same time, describing as accurately as possible your view that any possible outcome is possible over any period without excluding anything.
The objective is to enable you to claim credit for or disclaim credit for any and every outcome in hindsight at a later date without responsibility for anything bad, while remaining popularly optimistic at all times.
I take my hat off to the following financial phrases or "media speak" that, in Blodget's words, have no meat on the bone, ultimately mean nothing, yet offer an invaluable quiver of arrows to any commentator stuck for an opinion. Apologies to Blodget for my simultaneous precis and embellishment of his ideas.
"We're cautiously optimistic" or "We don't have a crystal ball"
To be used any time you don't have the balls to make any predictions or recommendations whatsoever while spending lengthy periods getting paid as a financial professional without a view.
"The easy money has been made"
Used to imply that you knew the market was going to go up before it did and that you and your clients made lots of money. The insinuation is that anyone who wants to make easy money should come and deal with you. It ignores the fact that you didn't make a bean in the last rally because you had, and still have, no idea what was going to, or is going to, happen next.
"Buy on weakness"
Any time you don't have the balls to say "buy" but want to be able to say later that you told everyone to buy the stock should it happen to go up. Use "Sell on strength" in the opposite circumstance.
"It's a stock-picker's market"
This perpetually true statement is used to imply that you have special stock-picking skills that others need to make money when in fact, you're as lost as everyone else.
"There's a lot of cash on the sidelines"
As long as there's a massive bond market, there is always a lot of cash on the sidelines, so this is particularly meaningless.
"Overbought" and "oversold"
Describes a stock or market that has gone up or down a lot and, while wanting to sound generally bullish, also implies the market might be due for a correction or rally but without you committing to it, allowing you to claim credit for both.
"Stocks are down on
profit-taking or up on bargain hunting"
A smart-sounding filler for when you don't have a clue why the market went up or down.
"The smart money"
Harry Hindsight's money. It only comes into existence in hindsight. Use with care or you risk irritating people with "dumb money" (which is everybody).
"More buyers than sellers"
In Australia, every trade is matched so there are never more sellers than buyers or buyers than sellers. So this is utter bollocks. Of course, most of us know this and simply use this expression as a test to see if our listener has a brain.
"We are buyers in the long term"
Yes, we have finally made a recommendation, although we're not taking any responsibility for the performance until you have forgotten who tipped you into this crap.
The cat's out of the bag. Anyone can be a financial guru.
Marcus Padley is a stockbroker with Patersons Securities and the author of sharemarket newsletter Marcus Today. His views do not necessarily reflect those of Patersons.
Frequently Asked Questions about this Article…
What are some common meaningless market phrases investors hear on TV and in the press?
Everyday investors often hear phrases like “we're cautiously optimistic,” “we don't have a crystal ball,” “the easy money has been made,” “buy on weakness,” “it's a stock-pickers' market,” “there's a lot of cash on the sidelines,” “overbought/oversold,” and “more buyers than sellers.” The article highlights these as media-friendly, non-committal expressions that sound smart but frequently convey little actionable information.
Why do financial commentators use vague jargon like “we're cautiously optimistic” or “we don't have a crystal ball”?
The article explains commentators use such phrases to sound experienced while avoiding firm predictions. That way they can claim credit if markets turn out well or disclaim responsibility if they don't — staying upbeat and popular without taking clear accountability.
How should investors interpret phrases like “the easy money has been made” or “buy on weakness”?
These phrases are typically marketing-friendly ways of implying past success or signalling a potential buying opportunity without committing to specific advice. The piece warns that “the easy money has been made” often falsely implies foresight, while “buy on weakness” lets commentators avoid a straight recommendation until hindsight proves them right.
What does “it's a stock-picker's market” mean for retail investors?
According to the article, that phrase is almost always safe to say because it simply suggests outperformance comes from selecting the right stocks. In practice it can be used to imply special skill, even though the commentator may be as uncertain as everyone else.
Is the phrase “there's a lot of cash on the sidelines” useful for investment decisions?
The article notes this is largely meaningless — especially while a large bond market exists — because there is almost always plenty of cash around. Investors should be wary of treating this line as a reliable indicator of imminent market moves.
What do analysts mean when they call a stock “overbought” or “oversold” and how should investors react?
“Overbought” and “oversold” are used to describe securities that have moved a lot up or down and hint that a correction or rebound might be due. The article points out these terms are intentionally non-committal, letting commentators sound generally bullish while reserving the right to claim credit for either outcome.
Why is the expression “more buyers than sellers” misleading in Australia?
The article explains that in Australia every trade is matched, so you can't literally have more buyers than sellers — the phrase is therefore ‘utter bollocks’ locally. It’s often used as a rhetorical test rather than an accurate market description.
Who are the commentators mentioned in the article and why does that matter to investors?
The article references Henry Blodget, who wrote a Business Insider piece called “16 meaningless market phrases that will make you sound smart on CNBC,” and Marcus Padley, a stockbroker with Patersons Securities and author of the Marcus Today newsletter. Citing these writers provides context: the list is a critique of financial media language and a reminder for investors to look past slick phrases to real analysis.
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