Dead Cat Bounce

Dead cat bounce is a Wall Street term that refers to a small, brief recovery in the price of a declining stock. The term is derived from the expression: ‘Even a dead cat will bounce if it falls from a great height.’ The earliest record of the phrase dates from a 1985 Financial Times article describing the Singaporean and Malaysian stock markets bounce after a hard fall during the recession of that year. A similar expression has an older history in Cantonese and this may be the origin of the term.

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