Dead Cat Bounce Notebook

Beware the stock market. Just when you think the correction is over and the trend is up, the positive sentiment is revealed as a fooler and the market takes another leg down. You’ve just been caught by a dead cat bounce. This Wall Street saying comes form the expression, “if you drop it from high enough, even a dead cat will bounce.” Sounds morbid, and it is. Embrace the dismal humour but avoid the devastation to your portfolio. Beware the dead cat bounce!