BEWARE THE “DEAD CAT”: Stock Market Bounce?

Posted on April 21, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

DCB = What it Is AND How it Works?

Update Courtesy: www.CertifiedMedicalPlanner.org

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 market decline.

ESSAY: https://www.forbes.com/sites/chuckjones/2020/03/13/beware-of-a-dead-cat-bounce/#6c800aab2324

QUERY: But, does the DCB concept apply to current ‘Bear” and “Tarriff” markets today?

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Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™8Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

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KITCHEN SINK: Stock Market Disclosures

Posted on September 22, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Technavio has announced its latest market research report titled Kitchen Sinks Market by End-user and Geography – Forecast and Analysis 2022-2026

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Kitchen Sink stock market disclosures are a communication technique commonly used by political parties, public companies and businesses, although it’s not so well known by the public. The idea is to release all of your bad news at the same time rather than creating a drip-drip effect over an extended period of time.

CITE: https://www.r2library.com/Resource

Steven Barnett, professor of communications at the University of Westminster, says it’s used by organizations when they have some really shocking news they know they are not going to get away with burying. “You’re saying: ‘Let’s just sweep up every piece of bad news we’ve got, put it all in one place, take all of the flak and deal with it at the same time'”. “When you’re announcing the worst figures in your corporate history, you know it’s never going to be a page two story.”

It’s the opposite of the “dead cat” strategy where you distract people from something that is garnering a lot of attention. The idea being that, by placing a dead cat on the table, you make people look in a different direction.

CITE: https://medicalexecutivepost.com/2022/09/29/what-is-a-dead-cat-bounce/

“If you know that you have pretty appalling news, it makes absolute sense to get it all out at the same time because the speed and intensity of the news cycle demands that the agenda moves on so you know you’ll be out of the spotlight within 48 hours.”

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What is a “DEAD CAT” BOUNCE?

Posted on September 29, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

HOW IT WORKS

SPONSOR: http://www.CertifiedMedicalPlanner.org

CMP logo

By Dr. David E. Marcinko MBA CMP®

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In finance, a dead cat bounce is a small, brief recovery in the price of a declining stock.

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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.

  • The dead cat bounce is a sudden and temporary increase in stock price caused by investors erroneously believing that the stock price’s reached its lowest.
  • The dead cat bounce can only be fully accurately determined with concrete data in hindsight.
  • Both falsely identifying a stock price trough (i.e., falling victim to a dead cat bounce) and falsely identifying a true price trough as a dead cat bounce will result in negative financial consequences.

CITE: https://www.r2library.com/Resource/Title/0826102549

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