Bunny Market

A bunny market is not a place to buy rabbits, but rather a term used to describe a market that is...hopping around. It’s neither bullish nor bearish (wrong animal), and can be very annoying, as no one knows what to expect next.

Bunny markets often occur during an economic recovery after a recession. Stocks begin to shoot up, but then go down again when inflation and higher interest rates kick in.

Fortunately, the bunny usually does not move too far in any one direction. Your best bet is to not put all your Easter eggs in one basket—diversify your holdings and avoid faddish, consumer-oriented stocks.