a dead cat bounce

a movement of share prices on the stock market

TRANSLATION

dead cat bounce = eine kurzfristige Markterholung vor einem erneuten Fall der Börsenkurse

STATISTICS

IN THE PRESS

Is this week's rally a DEAD CAT BOUNCE?

(Dow Jones Market Watch)

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Last Friday’s rise in global share prices may be no more than a DEAD CAT BOUNCE, according to some market watchers, indicating that further massive sell offs lie ahead.

(The Ireland Sunday Independent)

Did you
know?

dead cat bounce
noun phrase

- a temporary recovery from a prolonged decline or bear market, after which the market continues to fall

(Investopedia)

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WORD ORIGIN

A DEAD CAT BOUNCE is a term used by stock traders to describe a pattern wherein a moderate rise in the price of a stock follows a spectacular fall, implying that the rise does not indicate improving circumstances. It is derived from the notion that "even a dead cat will bounce if it falls from a great height."

The phrase has been used on the trading floors for many years. However the earliest recorded use dates from 1985 when the Singapore and Malaysia stock markets bounced back after a hard fall during the recession of that year. The Financial Times quoted a stockbroker as saying the market rise was "A DEAD CAT BOUNCE".

(adapted from Wikipedia)


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PRACTICE OWAD TODAY
Say something like:

"The good news is, our stock price made a nice recovery yesterday. The bad news is, it looks like A DEAD CAT BOUNCE."

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