What Is Bear Market? Meaning & Example
Definition
A bear market is a period of falling prices, commonly defined as a decline of 20% or more from a recent high. It often comes with pessimism and fear.
Related terms
A bull market is a period when prices are rising broadly and investor confidence is strong. It is often described as a rise of 20% or more from a recent low.
CorrectionA correction is a decline of roughly 10% to 20% from a recent peak. Corrections are a normal part of market cycles and happen fairly often.
RecessionA recession is a significant, widespread decline in economic activity lasting more than a few months. It often brings rising unemployment and falling business profits.
What is Bear Market?
A bear market is a period of falling prices, commonly defined as a decline of 20% or more from a recent high. It often comes with pessimism and fear.
Can you give an example of Bear Market?
If an index falls from 4,000 to 3,100 points, a drop of about 22%, many would call it a bear market.