DEAD CAT BOUNCE
dead cat bounce: translation
(ded kat BOWNS)
n.
A temporary recovery from a major drop in a stock's price. Also:dead-cat bounce.
Example Citations:After glancing at the top-performing funds of the second quarter, investors may be forgiven for wondering if they have somehow gone back to 1999. Many of the old favorites are there:
Munder NetNet, up 36.9 percent for the quarter. Amerindo Technology, up 32.6 percent. Firsthand Technology Value, up 39 percent. In 1999, those three funds more than doubled; Amerindo rose an astonishing 249 percent, including reinvested dividends.
Since peaking in early 2000, all three funds were still down by 80 percent through the second quarter, despite their recent gains. Much the same was true for many other funds at the top of the quarter's lists of the best-performing specialized funds.
So a little skepticism is natural. Are the gains for tech funds, and the broader gains in the Nasdaq composite index, which rose 21 percent for the quarter, the start of a real rally in technology and Internet stocks? Or are they nothing more than what Wall Street inelegantly but descriptively calls adead-cat bounce? In that case, the run-up will produce disappointment as shareholders wait for profits that never materialize.
— Alex Berenson, "Technology Is Back, but Is It Here to Stay?,"The New York Times, July 6, 2003
Markets like macabre metaphors. When stocks begin to rebound, voices of caution suggest it may be only adead-cat bounce, a phrase coined in The Financial Times in 1985 by reporters in Singapore and Kuala Lumpur to signify a slight rise after a great fall.
— William Safire, "On Language,"The New York Times, September 8, 2002
Earliest Citation:Shares on the Singapore and Kuala Lumpur stock exchanges managed to claw back about a quarter of Thursday's record losses yesterday, the second day of trading after an unprecedented three-day suspension. ...
Mr Daim, in his statement from Kuala Lumpur, asserted meanwhile that the majority of quoted Malaysian companies were fundamentally strong, and predicted that the market would recover next week.
This view is disputed by many investment analysts and economists. Despite the evidence of buying interest yesterday, they said the rise was partly technical and cautioned against concluding that the recent falls in the market were at an end.
"This is what we call a 'dead cat bounce'," one broker said flatly.
— Chris Sherwell, "Singapore stock market stages modest recovery after steep fall,"Financial Times, December 7, 1985
Notes:This somewhat gruesome phrase has been in the news lately because it was included in the new Encarta World English Dictionary, which includes English words and phrases from 74 different countries. My favourite word in the new dictionary (so far)? Hands down, it'stickety-boo, a Canadian/British word that means "perfectly fine."
Related Words:capitulation bottom
cat typing
drill bit stock
echo bubble
fallen angel
falling knife
fat finger trade
flash crash
moon rocket
Nasdaq
Rio hedge
show-me stock
single-digit midget
stuckholder
sucker rally
walk the cat back
Category:Stock Market and Investing
- dead cat bounce—Dead cat bounce translation A small upmove in a bear market. The New York Times Financial Glossaryu dead cat bouncestrong dead cat bounce bouncesup A rise in the...Financial and business terms
- dead cat bounce—dead cat bounce translation A small upmove in a bear market. Bloomberg Financial Dictionaryu dead cat bouncestrong dead cat bounce bouncesup A rise in the price ...Financial and business terms
- dead cat bounce—Dead Cat Bounce translationA temporary recovery from a prolonged decline or bear market after which the market continues to fall. Ever heard the saying Even a dead cat wi...Investment dictionary
- dead cat bounce—фин. бирж. подпрыгивание дохлой кошкиu резкий рост цены финансового актива после периода ее существенного снижения обычно вызван коротким покрытием позиций носит краткоср...Англо-русский экономический словарь