Finance: What is Dead Cat Bounce?

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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Transcript

00:20

of a high building It hits the cement dead bounces

00:23

a bit before then is a big wet thud Yeah

00:27

peeta no cats were harmed in the production of this

00:29

definition Thie market has fallen from five thousand twelve hundred

00:35

now it's at fourteen hundred and now it's back to

00:37

twelve hundred Yeah that uplift of two hundred points there

00:40

from twelve hundred fourteen hundred before it went back twelve

00:43

hundred which is the concrete that's the dead cat bounce

00:48

I'm not totally sure who came up with this term 00:00:50.247 --> [endTime] but wei have a pretty good idea