Bear Market

Bear Market

A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary, for many, a downturn of 20\% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market.

A bear market should not be confused with a correction, which is a short-term trend that has a duration of less than two months. While corrections are often a great place for a value investor to find an entry point, bear markets rarely provide great entry points, as timing the bottom is very difficult to do. Fighting back can be extremely dangerous because it is quite difficult for an investor to make stellar gains during a bear market unless he or she is a short seller.


Investment dictionary. . 2012.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • bear market — bear markets N COUNT A bear market is a situation on the stock market when people are selling a lot of shares because they expect that the shares will decrease in value and that they will be able to make a profit by buying them again after a… …   English dictionary

  • bear market — A term of art to describe the investment markets when in a phase of falling values and lack of optimism as to future values of investments (the opposite of a bull market). A bear market may be caused by a number of factors including high interest …   Law dictionary

  • bear market — A bear market is a period when investors are pessimistic and expect financial losses so are more likely to sell than to buy shares …   The small dictionary of idiomes

  • bear market — bear ,market noun count BUSINESS a situation in the STOCK MARKET in which the prices of STOCKS are falling …   Usage of the words and phrases in modern English

  • bear-market — (izg. bȇr màrkit) m DEFINICIJA ekon. burzovni izraz za špekuliranje na rast cijena, tj kupovanja dionica u očekivanju da će i dalje rasti, opr. bull market ETIMOLOGIJA engl …   Hrvatski jezični portal

  • bear market — ► NOUN Stock Exchange ▪ a market in which share prices are falling …   English terms dictionary

  • bear market — bear .market n a situation in which the value of ↑stocks is decreasing …   Dictionary of contemporary English

  • bear market — A period of declining market prices. Chicago Board of Trade glossary ( bear/ bearish) When prices are declining, the market is said to be a bear market ; individuals who anticipate lower prices are bears. Situations believed to bring with them… …   Financial and business terms

  • Bear market — Any market in which prices are in a declining trend. The New York Times Financial Glossary * * * bear market bear market ➔ market1 * * *    A market in which prices have been falling for a prolonged period. Opposite of a bull market.    ► See… …   Financial and business terms

  • bear market — noun a market characterized by falling prices for securities • Hypernyms: ↑market, ↑securities industry * * * noun, pl ⋯ kets [count] finance : a market (such as a stock market) in which prices are going down compare ↑bull market * * * ˈbear… …   Useful english dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”