The Wonderful Thing About Markets? They Bounce
Whether dead cats or Tiggers, great rebounds are inevitable during high uncertainty and volatility. It’s better for longer-term investors to resist timing and instead see the bigger picture.
Bouncing better than a dead cat.
Photograph: Bloomberg
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Feline market analogies are in order after a day like Wednesday. The huge resurgence for risk assets could be called a “dead-cat bounce” (a charming Wall Street expression derived from the fact that even a dead cat will bounce if you drop it far enough.) It could also be called a Tigger market because, as the Winnie the Pooh character assures us, “Bouncing’s what Tiggers do best.” Just try substituting the word “markets” for “Tiggers” in this poem: