During this unpredictable movement in stock markets, terms like bulls, bears and dead cats are being used quite often. Some consumers may find these terms related to investments or financial markets unfamiliar.
Globally, markets are going through heightened volatility amid uncertainty due to US President Donald Trump’s tariff policies. During this unpredictable movement in stock markets, terms like bulls, bears and dead cats are being used quite often. Some consumers may find these terms related to investments or financial markets unfamiliar. Here is a guide to some common words that are being used quite often.
Dead Cat Bounce
A brief rebound in stocks amid free fall or uncertainty is known as a “dead cat bounce”. In such cases, the market recovery is usually temporary and brief, and the downturn tends to resume.
The term is used as there’s a notion that even a dead cat will bounce if it falls from a great enough height.
Bear Market
A bear market is a term used when there is a significant fall, say around 20 per cent, on the Wall Street.
Bear is used to refer to a market slump as the animal hibernates, so they represent a stock market in retreat.
Bull Market
In contrast, the bull market is used for a surging market because bulls charge.
Capitulation
Capitulation refers to a situation in which investors or traders lose hope and give up on the idea of recouping their losses. This usually happens during times of high uncertainty and volatility – like these days.
Recession
A recession is a time when the economy shrinks and unemployment rises.
Buy The Dip
“Buying the dip” refers to purchasing or buying stocks at a discount after a significant fall in the market.
Unfortunately, it’s all but impossible to make such a timed decision as one cannot know where the bottom will be or how long a recovery will take.
10-year Treasury note
The 10-year Treasury bond yield is the interest rate the US government pays to borrow money for a decade. It’s a key indicator of investor sentiment and economic conditions, and it helps set prices for all kinds of other loans and investments.
