“Tennis-ball-like” price movements featured in Toyo Keizai Online column

Good morning, this is Matsushita.

Last year, in a book about stocks, there was an impressive phrase.

It spoke of price movements like a tennis ball.

When you drop a tennis ball onto a court,

it bounces back vigorously, doesn't it?

Similarly, when stock prices fall,

the price movement that promptly reverses is

described as shown here.

“I prefer stocks that rebound lightly like a tennis ball.”

I think the expression went like this.

“I like stocks that casually rebound like a tennis ball.”

Indeed, price movements like a tennis ball

are pleasant, aren’t they.

When the stock I hold starts to decline,

everyone worries about the shrinking unrealized gains,

and above all, how deep the fall will go

is a concern.

However, stocks with tennis-ball-like movements

rebound quickly with shallow declines,

and begin to rise as if they were bouncing back,

updating their high prices.

If you think about it that way,

the pull of a strong-trend stock

can feel like a tennis ball, indeed.

If you are an investor aiming for mid- to long-term holdings in stocks,

search for tennis-ball-like price movements

and grasp their characteristics.

If you do, even when prices fall, they will rebound quickly,

and expand your unrealized gains.

I have been investing for over 17 years,

and this was the first time I heard such a wonderful expression.

Today as well, let’s seek tennis-ball-like

price movements!