Tortoise Rally

AAA

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.

INVESTOPEDIA EXPLAINS '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. Bear Market Rally

    A period in which prices of stocks increase during a bear market. ...
  2. Sucker Rally

    A temporary rise in a specific stock or the market as a whole. ...
  3. Rally

    A period of sustained increases in the prices of stocks, bonds ...
  4. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week ...
  5. Echo Bubble

    A post-bubble rally that becomes another, smaller bubble. The ...
  6. Honey Badger Stock Market

    A play on an Internet meme of 2011 made to relate to the stock ...
RELATED FAQS
  1. Is the drugs sector better suited for active or passive investment?

    Active management and passive management represent two vastly different approaches to investing. Active investors keep their ... Read Full Answer >>
  2. Why are growth investors attracted to the chemicals sector?

    The chemicals sector attracts growth investors because two of its three segments beat the broader market when the market ... Read Full Answer >>
  3. Which stage of the economic cycle is most favorable for the chemicals sector?

    The expansionary stage of the economic cycle is most favorable for the chemicals sector. Each of the chemical sector's separate ... Read Full Answer >>
  4. What are the benefits of investing in a cyclical stock?

    Cyclical stocks tend to be highly correlated with the overall business cycle, so an investor can invest in a cyclical stock ... Read Full Answer >>
  5. Why would growth investors be attracted to the electronics sector?

    Growth investors gravitate toward the electronics sector because its higher-than-average volatility, particularly in the ... Read Full Answer >>
  6. How much of a diversified portfolio should be invested in the chemicals sector?

    The chemicals sector varies in volatility by segment, but overall, it tracks fairly closely with the broader market. Therefore, ... Read Full Answer >>
Related Articles
  1. Active Trading Fundamentals

    Forces That Move Stock Prices

    You can't predict exactly how stocks will behave, but knowing what affects prices will put you ahead of the pack.
  2. Investing

    Turnaround Stocks: U-Turn To High Returns

    Find out which catalysts can turn struggling stocks around to create a tidy profit.
  3. Economics

    When Stock Prices Drop, Where's The Money?

    Market perception can create money - and make it disappear into thin air.
  4. Options & Futures

    The Stock Cycle: What Goes Up Must Come Down

    Stock prices seem random, but there are repeating cycles. Learn to take advantage.
  5. Investing

    What A Rate Hike May Mean For Stocks

    By the end of the year, investors will likely be contending with the first Federal Reserve (Fed) rate hike in nearly a decade.
  6. Investing

    The Case For Stocks Today

    Last week, U.S. equities advanced with the S&P 500 Index notching new records. Investors are now getting nervous with rate and currency volatility spiking.
  7. Investing

    When Will The Bull Market End?

    A few weeks ago, the current bull market celebrated its sixth anniversary, making it one of the longest in history.
  8. Investing

    Welcome Back, Volatility

    Volatility is likely to resurface as the Federal Reserve gets closer to adjusting its monetary policy stance, even if that adjustment is a measured affair.
  9. Technical Indicators

    This Indicator Should Always Be Part Of Your Strategy

    The relationship between price, 200-day EMA and its slope of generate useful patterns that assist in price prediction and trade management.
  10. Charts & Patterns

    Trading Against the Grid and Away from the Herd

    The best trade could be in the opposite direction when a classic price pattern doesn’t behave according to perfect rules.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center