Tortoise Rally

DEFINITION of 'Tortoise Rally'

A slow-and-steady appreciation of financial market prices over time. A tortoise rally contrasts with more volatile rallies where prices rise and fall quickly while maintaining a general upward trend.

BREAKING DOWN 'Tortoise Rally'

Long-term retail investors generally enjoy the steady gains produced by a tortoise rally. However, active traders and hedge funds can become frustrated by the lack of quick drops and rises that allow these players to capitalize on their superior information and market access. For them, volatility creates opportunities to buy underpriced securities for the long haul or to create short-term trading profits.

RELATED TERMS
  1. Tortoise Economy

    An economy that is growing slowly or not at all over time. The ...
  2. Rally

    A period of sustained increases in the prices of stocks, bonds ...
  3. Relief Rally

    A relief rally is an increase in market prices that occurs because ...
  4. Capital Appreciation

    A rise in the value of an asset based on a rise in market price. ...
  5. Bear Market Rally

    A period in which prices of stocks increase during a bear market. ...
  6. Underpricing

    The pricing of an initial public offering (IPO) below its market ...
Related Articles
  1. Retirement

    How To Make Catch-Up Contributions To Your 401(k)

    Whether you're a tortoise or a hare, once you've turned 50, you can boost your 401(k) savings rate.
  2. Trading

    Commodity ETFs Near Buy Levels (JO, WEAT)

    These commodity ETFs have rallied and are pulling back, presenting buying opportunities right now.
  3. Markets

    Rallying Stocks About to Hit a Wall (HLT, LUV)

    These stocks have rallied over the last couple months, but they will be hard-pressed to keep rising. Here's why.
  4. Markets

    Judgment Day: S&P at Major Technical Juncture (SPY)

    The S&P 500 is at a critical juncture. Traders are torn, and short-term moves here could have long-term implications.
  5. Retirement

    5 Resources To Learn To Retire Rich

    Find out what you need to know to plan for retirement, and which resources do the best job of showing the way.
  6. Markets

    Buffett's Bet with the Hedge Funds: Year Eight (BRK-A, BRK-B)

    In 2008, Warren Buffett placed a million-dollar bet that an S&P 500 index fund would beat the funds of funds hedge fund managers would select.
  7. Managing Wealth

    Volatile Stocks: Great, If You Have The Stomach

    Volatile stocks can be a lucrative opportunity for short-term traders. For buy-and-hold investors, it's a much different story.
  8. ETFs & Mutual Funds

    Many International Market ETFs Still Look Weak

    Japanese, European and Chinese markets still look weak. Here's what you need to know about these ETFs.
  9. Markets

    3 Reasons to Ignore Market Volatility (VIX)

    If you can keep your head while those about you are losing theirs, you can make a nice return in roiling markets.
  10. Managing Wealth

    Explaining Appreciation

    Appreciation refers to an increase over time in the value of an investment or asset.
RELATED FAQS
  1. What are the signs of a bear market rally?

    Read about some of the signs of a bear market rally, an unpredictable bull movement that takes place in the middle of a stronger ... Read Answer >>
  2. If the stock market is so volatile, why would I want to put my money into it?

    In this question, volatility refers to the upward and downward movement of price. The more prices fluctuate, the more volatile ... Read Answer >>
  3. Is volatility a good thing or a bad thing from the investor's point of view, and ...

    Learn the basics of volatility in the stock market and how the increased risk provides greater opportunities for profit for ... Read Answer >>
  4. How does implied volatility impact the pricing of options?

    Learn about two specific volatility types associated with options and how implied volatility can impact the pricing of options. Read Answer >>
  5. What risks should I consider taking a short put position?

    Learn what risks to consider before taking a short put position. Shorting puts is a great strategy to earn income in certain ... Read Answer >>
  6. What is the relationship between implied volatility and the volatility skew?

    Learn what the relationship is between implied volatility and the volatility skew, and see how implied volatility impacts ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center