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Bloodletting and Dead Cat Bounce

EarnBlood Letting

Blood letting is a phenomenon which occurs during the extreme bear market.In the blood letting prices of the securities fall with a very fast rate.Stock prices of all types of companies fall during the blood letting.Value investors can easily take advantage of this situation by purchasing bargain stocks.


Dead cat bounce

Dead cat bounce is a temporary recovery from the substantial losses.This type of recovery is short lived and this recovery is followed by a downtrend in the prices of the stocks.Investors should adopt wait and see policy during the bearish and dead cat bounce scenario.

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