by David Forest
Every investor falls for the “dead cat bounce” at least once.
If you don’t know what that is, it’s a short-lived recovery during a bear market in which stocks briefly go up… only for them to start dropping again soon after. It fools a lot of investors into thinking the bear market is finally over.
And right now, it seems like everyone is taking the bait.
After the COVID-19 pandemic rattled markets, the Federal Reserve stepped in and announced it would be printing more money to cushion the effects of the market crash. But no one knows how much more money, because the Fed stated that it will issue as much as is needed.