the Dead Cat Bounce of 2008

There is an expression called a ‘Dead Cat Bounce’ and it is where a market or stock take a fall and then as people see it going down they believe it then represents value and buy in causing a temporary upswing, There is a moderate rise in the price followed by a spectacular fall. This is the ‘bounce’ but alas, if the cat is dead it continues shortly there after to fall. It comes from the reasoning that ‘even a dead cat will bounce if it falls from a great height’. Good school playground reasoning I suppose!

Is this what we are witnessing in the rally? I think that given all of the recessionary indicators present that it may be the lesser of the two evils to let a recession come in and run its course, the average recession is about a year, the average boom is about 5 years.

there is a belief out there that recessions are the ultimate evil, I can tell you that they are not, George Bush is …

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