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Username: PrettyWoman

Rating:
Guru Stars

Asked to: Jun Wang

Date Created: 14 Nov 2016
Category 40
Tag Financial
Question What is a 'Relief Rally'?
Advice from Guru
Hi PrettyWoman,

A relief rally is an increase in market prices that occurs because expected negative news does not end up materializing, or is less severe than anticipated. Poor economic data, corporate earnings or political outcomes are all events that may be "priced in to" a market. If these data or events actually turn out to be less poor, or even positive, a relief rally can take place. Relief rallies can occur in many asset classes, including the stock market, bond market, commodities such as oil, and others.

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