Dead Cat Bounce

Dead Cat Bounce refers to the situation of a short-term recovery after a sudden decline in the markets and is generally followed carefully as it is not a sign of a permanent recovery.

A Dead Cat Bounce is defined as a short-term recovery following a sudden and significant decline in financial markets. This term refers to situations that are viewed as a temporary improvement in the market and are not generally considered the beginning of a permanent uptrend. Analysts often note that after a dead cat bounce, prices may begin to fall again and the downtrend may continue. Therefore, investors continue to evaluate potential risks in the markets while taking the dead cat bounce into account.

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