Bear market
From Economypedia.com
The opposite of a bull market.
Bear market refers to the state of a market that witnesses a continuous dip in the prices of securities. Markets which experience a downturn of 15-20% are incorporated as a bear market entry. Most of the financial markets undergo different trends. These trends are referred to as secular trends, secondary trends and primary trends. While demarcating a market as a bear or a bull market, the sellers are referred to as bears while the buyers are referred to as bulls.
In a bear market the investors or the bears expect to see a fall in share prices. The bulls, on the other hand, anticipate a rise in the prices of shares. Instances of bear market include the Wall Street Crash in 1929 which led to the Great Depression in the United States of America. However, a temporary low phase in the markets is not characterized as a bear market. It happens over a prolonged period of time and incurs heavy losses.
See also
- Bull market
- Stock market
- Wall Street
- Bearish sentiment
