Market rebound is a phenomenon when, after a period of decline, asset prices begin to rise again. This is a key moment for investors as it may signify a shift in sentiment and trends in financial markets.
The market recovery can be triggered by various factors: improvement in economic indicators, changes in central bank policies, reduction of geopolitical tensions, or simply the psychological reaction of investors. One example is the recovery of stock markets after crises such as the global financial crisis of 2008 or the COVID-19 pandemic.
It is important to understand that not every price increase after a decline is sustainable. Sometimes it can be a so-called 'dead cat bounce' — a temporary rise before further decline. For long-term investing, it is essential to consider fundamental factors: the state of the economy, financial indicators of companies, and overall market trends.
Investors should be cautious and avoid impulsive decisions. Utilizing analytical tools and diversifying the portfolio can help minimize risks during periods of market instability.