dead cat bounce

"Dead cat bounce" is a term used in financial markets to describe a temporary recovery or rebound in the price of a declining asset or stock, after a significant and sustained decline. The phrase originates from the idea that "even a dead cat will bounce if dropped from a sufficient height." It signifies a brief pause or improvement in an otherwise deteriorating situation, often misleading investors into thinking that the worst is over, only to see the decline continue shortly after. The bounce is generally short-lived and does not indicate a reversal of the overall downward trend.


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