Tortoise Rally

Definition

The term tortoise rally is used to describe a slow and steady increase in the value of financial markets over time.  Tortoise rallies benefit investors that practice a buy and hold strategy.

Explanation

Financial markets, including those that offer commodities, bonds, and stocks, typically demonstrate an upward or downward trend over time.  A tortoise rally is a slow and steady increase in the price of securities traded in a financial market.

Individuals purchasing securities, and holding onto them for relatively long terms, benefit from a tortoise rally, since their investment is providing them with a steady return over time.  Investors that profit from the volatility of a market, such as day traders, are oftentimes frustrated with the lack of the market's sudden movements.  It's important to note that a tortoise rally is always associated with a bull market, while not every bull market is also a tortoise rally.

Related Terms

January effect, gray swan event, technical rally, October effect, Santa Claus rally