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Finance: What is Dead Cat Bounce? 13 Views

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What is Dead Cat Bounce? Whenever a security goes into free fall decline, contrarians or those thinking that the drop indicates overselling may start to buy and give the security a minor interim rally before the next shoe drops and it plunges further. While this scenario can happen to any asset, the term `Dead Cat Bounce’ is usually ascribed to stocks and is based on the notion that even a dead cat will bounce up slightly if it falls fast and hard enough against the pavement.

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00:00
Finance allah shmoop What is a dead cat bounce It
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sounds like a dance move from the old west right
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but it actually refers to a terrible situation when the
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market plummets rebounds very slightly and then plummets again The
00:16
idea comes from the notion of dropping a cat off

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of a high building It hits the cement dead bounces
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a bit before then is a big wet thud Yeah
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peeta no cats were harmed in the production of this
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definition Thie market has fallen from five thousand twelve hundred
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now it's at fourteen hundred and now it's back to
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twelve hundred Yeah that uplift of two hundred points there
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from twelve hundred fourteen hundred before it went back twelve
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hundred which is the concrete that's the dead cat bounce
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I'm not totally sure who came up with this term 00:00:50.247 --> [endTime] but wei have a pretty good idea
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