Business, Legal & Accounting Glossary
A prolonged period in which investment prices fall, accompanied by widespread pessimism. If the period of falling stock prices is short and immediately follows a period of rising stock prices, it is instead called a correction. Bear markets usually occur when the economy is in a recession and unemployment is high, or when inflation is rising quickly. The most famous bear market in U.S. history was the Great Depression of the 1930s. The term “bear” has been used in a financial context since at least the early 18th century.
While its origins are unclear, the term may have originated from traders who sold bearskins with the expectation that prices would fall in the future. opposite of a bull market.
A bear market is a market in which prices decline against a background of widespread pessimism (the opposite of bull market). A bear market is generally shorter in duration than a bull market. A bear market signifies a prolonged decline in stock prices that may occur for months or even years. A bear market in bonds is often fueled by fears of rising inflation/interest rates while a bear market in stocks is usually caused by investors who expect declining economic activity and falling profits. A general rule of thumb on Wall Street for what constitutes a bear market in the stock market is a decline of 20% or more. However, the largest bear market (1929-1932) resulted in the Dow declining 89%.
After my company went public, we saw our stock price decline dramatically not through any fault of our own, but because we were in the middle of a bear market and all investment prices were falling.
You may find it is in your best interest to look for an investment in the bear market and hope that it goes well.
Detroit automakers are still recovering from the recent bear market, as their stocks took such a hit that they nearly went bankrupt before the economic recovery.
bear trap
bear market rally
bullish belt hold
bear rally
overextension
secular market
Elliott Wave Theory
bearish belt hold
contra market
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This glossary post was last updated: 21st November, 2021 | 0 Views.