New York, April 10 (AP) Bulls, bears and dead cats are lurking in the background of President Donald Trump’s trade war. As the effects of the latest rates of the administration unfold, news consumers can confront unfamiliar conditions regarding investment or financial markets. Here is a guide for some of the most common words: Bear Market A bear market is a term used by Wall Street when an index such as the S&P 500 or the Dow Jones industrial average for a sustained time fell by 20% or more. Why use a bear to refer to a market slump? Bears hibernate, so they represent a stock market in refuge. In contrast, Wall Street’s nickname for an increasing market is a bull market, because bulls are asking. Dead Cat bounce as shares briefly fall back into a moment of free fall or uncertainty, it is known as a ‘dead cat bouncing’. It is of the idea that even a dead cat will bounce if it falls from a large enough height. The market recovery tends to be temporary and short, and the downturn tends to resume. Capitulation capitulation refers to the point when investors give up on the idea of recovering and selling their losses, often for fear and intolerance of falling prices. It tends to happen during times of low confidence and high uncertainty and volatility. Capitulation can sometimes indicate the bottom of a market, but it is easier to identify in retrospect. Recession A recession is a time when the economy is shrinking and unemployment is rising. Recessions are officially declared by the obscure -sounding national Bureau of Economic Research, a group of economists considering factors such as renting trends, income levels, spending, retail sales and factory outputs. The Bureau’s Cycle Dating Committee defines a recession as a significant decrease in economic activity spreading on the economy and lasts more than a few months. ‘The organization usually does not explain a recession before one starts, sometimes as long as a year later. In the days before Trump’s most recent rates came into effect, Goldman Sachs economists increased their assessment of the chance that the US would experience a recession of 35% to as high as 65%, but analysts recalled the forecast on Wednesday after its administration announced a 90-day break on most of the parts. Buy the dip “Buy the Dip” refer to the purchase of a stock or to buy the market right after losing value, at a discount. The phrase is regularly used by retail investors. Unfortunately, it is anything but impossible to give the market time, to know where the bottom will be or how long a recovery will last. 10-year Treasury notes that the 10-year treasury return is the interest rate that the US government pays money for a decade to borrow money. This is an important indication of investor sentiment and economic conditions, and it helps to determine prices for all kinds of other loans and investments. The yield affects the borrowing costs and indicates expectations about inflation and economic growth. Historically, treasury effects are considered one of the safest assets in the world. This means that investors buy it regularly if there is uncertainty in the market, which will lower the return. Prices for the 10-year bonds tend to decline if the confidence is high (and people buy assets that are considered risky), causing the returns to rise. In recent days, however, investors have sold Treasury bonds, which has produced the 10-year returns. This may indicate a lack of consumer confidence in treasury effects itself, or any number of other factors. (AP) Scry first published: 10 Apr 2025, 02:52 AM IST
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