Market drift
The general tendency of stock prices to rise over long periods. Anything that holds stocks benefits from it, whatever the reason for buying.
In plain English
Over most of history, stocks went up more often than down. So almost any rule that buys and holds for a while makes money, and it is easy to credit the rule instead of the market.
Uncle Gary explains
Kevin claims his new running shoes made him taller. Kevin is 15. He would have grown anyway.
Why it matters for your money
This is why the golden cross made money in our test: the market drifted up, and a random stock bought on the same day made the same.
Where we tested it
- Does the Golden Cross Work? We Tested 72 Strategies
- Does Buying the Dip Work? We Checked Which Dips
- Do Support Levels and Fibonacci Work? We Drew Random Lines Too
Related terms
All glossary terms. Educational content, not financial advice.