Die Heuning Pot Literature Guide
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Finance Glossary

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Dead Cat Bounce

Definition:

The market has fallen from 5,000 to 1,200. Now it's at 1,400 and you think it's headed to below 1,000. That uplift of 200 points from 1,200 to 1,400 is the "dead cat bounce" - and with macabre tones comes from the notion of dropping a cat off of a high building. It hits the cement - is dead - and bounced a bit before a wet thud. Yeah, gross. (PETA: No cats were harmed in the production of this question.)

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