The Dead Cat Bounce: The Market’s Cruel Mirage
“Even a dead cat will bounce if it falls from high enough.” — Wall Street proverb (and possibly a cat-hating cynic) 🐾 What Is a Dead Cat Bounce? A Dead Cat Bounce is a temporary recovery in asset prices after a sharp decline, often mistaken for a true reversal. Think of it like this: the market falls off a cliff, hits the pavement, and then—splat—it jolts back upward. But that bounce? It’s not life. It’s momentum. In financial terms, it’s a short-lived recovery in a bear market, usually followed by continued decline. It seduces hopeful investors into thinking the … Continue readingThe Dead Cat Bounce: The Market’s Cruel Mirage