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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
A period when stock prices rise quickly after falling.
Why It Matters
Rallies often come when least expected - typically when sentiment is at its worst. The best single days in market history usually occur during bear markets, not bull markets. Missing just the 10 best days over 20 years can cut your returns in half. This is why staying invested matters more than timing the market.
Key Points
- A 'dead cat bounce' is a brief rally during a larger decline - not a true recovery
- The biggest single-day gains often happen right after the biggest drops
- Rallies can be driven by real improvement or just short-term sentiment - watch the fundamentals
Related Terms
Common Questions
A period when stock prices rise quickly after falling. Rallies often come when least expected - typically when sentiment is at its worst. The best single days in market history usually occur during bear markets, not bull markets.
Rallies often come when least expected - typically when sentiment is at its worst. The best single days in market history usually occur during bear markets, not bull markets. Missing just the 10 best days over 20 years can cut your returns in half. This is why staying invested matters more than timing the market.
A 'dead cat bounce' is a brief rally during a larger decline - not a true recovery
The biggest single-day gains often happen right after the biggest drops
Rallies can be driven by real improvement or just short-term sentiment - watch the fundamentals