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Finance: What is Dead Cat Bounce? 13 Views
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Description:
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
- 00:00
Finance allah shmoop What is a dead cat bounce It
- 00:06
sounds like a dance move from the old west right
- 00:09
but it actually refers to a terrible situation when the
- 00:12
market plummets rebounds very slightly and then plummets again The
- 00:16
idea comes from the notion of dropping a cat off
Full 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
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