#MarketRebound Market Rebound, or market rebound, is a phenomenon where the prices of financial assets, such as stocks, bonds, or cryptocurrencies, begin to rise after a period of decline. Usually, this is a reaction to earlier discounts that may have resulted from macroeconomic factors, such as recession, interest rate hikes, or geopolitical uncertainty. The rebound may be driven by positive economic data, interventions by central banks, such as interest rate cuts, or improvements in investor sentiment. An example can be the stock market rebound after the pandemic in 2020 when massive stimulus programs supported the markets. However, not every rebound guarantees a lasting bull market – sometimes it is merely a temporary correction, known as a 'dead cat bounce.' Investors must analyze fundamentals to differentiate between short-term rebounds and sustainable growth. The risk is that overly optimistic expectations can lead to further declines if economic fundamentals remain weak.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.See T&Cs.