bear market

For more information on bear market, visit Britannica.com.

View more Business & Finance videos

Prolonged period of falling prices. A bear market in stocks is usually brought on by the anticipation of declining economic activity, and a bear market in bonds is caused by rising interest rates.
Contrast with bull market.

Previous:	Bear Hug, Bear, Bayesian Approach to Decision Making
Next:	Bear Raid, Bearer, Bearer Bond, Bearer Form, or Bearer Paper

A market, especially a stock market, characterized by falling prices; the opposite of a bull 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.

Investopedia Says:
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.

Related Links:
Stay calm, play dead and keep your eyes open for attractive valuations. Surviving Bear Country
You can defend your retirement savings from the ravages of a bear market. We'll show you how. Bear Spray For Your 401(k)
Score big by taking Tiger Woods' approach to golf and applying it to your portfolio. Play The Market Like Tiger Plays Golf
Learn which stocks to watch and which to avoid when the Dow starts to sink. Survival Tips For A Stormy Market
Both parts of the market cycle present major opportunities for savvy investors. Banking Profits In Bull And Bear Markets
How can you get back into the market to avoid missing market recovery gains? Find out here. Riding The Bear Into A Bull Market
A clear rebalancing strategy is a critical component of portfolio management, particularly in tough economic times. Portfolio Management Pays Off In A Tough Market
All investors should be aware that the best time to buy stocks is when the market is tanking, according to history. Option Strategies For A Down Market

For a list of words related to bear market, see:

• Securities - bear market: market in which stocks are declining

---