In the world Financial and investments Is there Different words to define complex ideas Now, as it comes into effect Fees Trump refers to everything we will decrease with them. ‘Event’Bounce dead cat‘This is undoubtedly a concept that can publish a smile, but the truth is that this expression refers to Fluctuate In the market.
Last Tuesday, April 8, the European stock markets arose with a transparent peace, which was completely listed from the previous days Monday and Black Friday. However, yesterday Dyeing the red bags back Con 2% of the IBEX 35 caseIt exceeded 3% of pockets like Milan, Paris and Frankfurt.
In this context, the process of referring to the event of ‘dead cat regeneration’ Temporary recovery after crisis The rear reincarnation.
What does ‘regeneration of the dead cat’ mean?
When the stock market opened on Tuesday, market recovery is a simple ‘dead cat’s regeneration’, an expression of Defines false recycling in the stock market correction. In simple words, it seemed like a recovery on Tuesday, and this was only a temporary relief before Wednesday prices were down.
This word comes from the famous proverb: “If it is high for a dead cat it jumps”It explains itself. It was created Wong Sulang Y Horaz PragueTwo journalists of the Financial Times and Malaysia and Singapore in 1985 were used for the first time when they met the economic recession. This concept is also used In politics To refer to a candidate or politician, after a corruption, he sees the return of his approval.
The ‘dead cat’ found light in 1985, A similar one has already happened during the 29 crisis. At the beginning of the 1930s, nearly 50% of the market fell in the fall of the 1929 Autumn, after the fall of the market. This sudden increase has led to a higher level of only 20% lower than the last peak of the market, but it came fast, and quickly collapsed (89 %from the maximum). We know the story, the market did not come up from 1930 to quarter a century later.
Why does ‘regeneration of the dead cat’ produce?
‘Dead cat’ is an event It refers to psychology. Sometimes, after a strong fall, some investors think that prices are waiting for the background to be retrieved quickly. This will produce short regeneration. In the case CommerceThe market restarts can be created by simple things An X output or a medium term. What happened now 90 -day area fighting It benefits European markets.
‘Repeat of dead cats’ Cannot be confirmed Until the prices fall down to the rest of the beginning. Also, the bags may be as indicated by Donald Trump’s fight and action They start a little bit of redemption Until a new geopolitical movement that changes its course, in the financial world, everything can change overnight.
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