dead cat bounce

dead cat bounce
(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 a dead-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 a dead-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's tickety-boo, a Canadian/British word that means "perfectly fine."
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New words. 2013.

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Look at other dictionaries:

  • Dead Cat Bounce — im 2. Halbjahr 2000 nach dem Platzen der Dotcom Blase (NASDAQ Composite Index) Der Dead Cat Bounce (dt. Hüpfer der toten Katzen) ist eine Metapher des Kapital und Börsenmarktes. Er beschreibt das Phänomen, dass in einem Börsenkrac …   Deutsch Wikipedia

  • Dead-Cat-Bounce — (dt. Hüpfer einer toten Katze) ist eine Metapher an den Finanzmärkten. Sie beschreibt die nicht nachhaltige Erholung eines Wertpapierkurses oder Wertpapierindex nach einem starken, meist länger andauernden Einbruch. Der Begriff ist abgeleitet von …   Deutsch Wikipedia

  • Dead cat bounce — For the Irish comedy rock band, see Dead Cat Bounce (comedy band). In economics, a dead cat bounce is a small, brief recovery in the price of a declining stock.[1] Derived from the idea that even a dead cat will bounce if it falls from a great… …   Wikipedia

  • Dead cat bounce — A small upmove in a bear market. The New York Times Financial Glossary * * * dead cat bounce dead cat bounce ➔ bounce2 * * *    A rise in the price of a financial instrument, or an overall market, after a prolonged fall. This is likely to be… …   Financial and business terms

  • dead cat bounce — A small upmove in a bear market. Bloomberg Financial Dictionary * * * dead cat bounce dead cat bounce ➔ bounce2 * * *    A rise in the price of a financial instrument, or an overall market, after a prolonged fall. This is likely to be followed by …   Financial and business terms

  • dead-cat\ bounce — Wallstreet expression describing the phenomenon of a stock bottoming out to near nil and then recovering with a sharp buying spree from bargin hunters. The notion being that even a dead cat will bounce if dropped from a high enough point. Enron… …   Dictionary of american slang

  • dead-cat\ bounce — Wallstreet expression describing the phenomenon of a stock bottoming out to near nil and then recovering with a sharp buying spree from bargin hunters. The notion being that even a dead cat will bounce if dropped from a high enough point. Enron… …   Dictionary of american slang

  • dead cat bounce — n. Stock Market a temporary recovery in share prices after a substantial fall, caused by speculators buying in order to cover their positions * * * ˌdead cat ˈbounce [dead cat bounce] noun a temporary and small upward movement in share prices… …   Useful english dictionary

  • dead-cat bounce — /ded kat / Slang. a temporary recovery in stock prices after a steep decline, often resulting from the purchase of securities that have been sold short. * * * dead cat bounce noun (stock exchange sl) A temporary recovery of share prices following …   Useful english dictionary

  • dead-cat bounce — very little recovery after a loss, not coming up again    The broker said, It was a dead cat bounce. Stocks remain low …   English idioms

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