In finance, a dead cat bounce is a small, brief recovery in the price of a declining stock. Derived from the idea that “even a dead cat will bounce if it falls from a great height”, the phrase, which originated on Wall Street, is also popularly applied to any case where a subject experiences a brief resurgence during or following a severe decline. History The earliest citation of the phrase in the news media dates to 1985 when the Singaporean and Malaysian stock marketsbounced back after a hard fall during the recession of that year. Journalists Horace Brag and Wong Sulong of the Financial Times were quoted as saying the market rise was “what we call a dead cat bounce”. The phrase is also used in political circles for a candidate or policy that shows a small positive bounce in approval after a hard and fast decline.   Variations and usage The standard usage of the term is: A short rise in price of a stock which already suffered a fall. In other instances the term is used exclusively to refer to securities or stocks that are considered to be of low value. First, the securities have poor past performance. Second, the decline is “correct” in that the underlying business is weak (e.g. … Continue reading Dead Cat Bounce