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What is a bear market?

Updated: 9/13/2023
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Gwendolyn Nicolas

Lvl 10
9y ago

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According to the U.S. Securities and Exchange Commission, a bear market occurs when a broad market index falls by 20 percent or more over a period of at least a two months and the outlook is generally pessimistic. The average length of a bear market is 367 days, and they are usually accompanied by recession periods when the economy shrinks and unemployment rates soar.

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Theodora Kertzmann

Lvl 10
4y ago
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John Smith

Lvl 3
3y ago

The global health crisis has triggered fear of pushing several economies into a large-scale meltdown. The COVID-19 pandemic has rippled the global financial markets, inducing steep drops in the world’s major indices. (information source:kalkinemedia)Although numerous coronavirus hotspots have begun to show signs of flattening the curve, the uncertainty surrounding the equity markets still remain prevalent.

What makes bear market fascinating is the golden opportunity it offers to beef up the stock portfolio and set the stage for building wealth over the long run. With plenty of stocks trading at bargain prices, the bear market offers a chance to buy shares of solid businesses at reasonable prices.Whether it is bear or a bull market, the decisions of investors are usually influenced by the actions of their acquaintances, relatives or other investors. But this herd mentality strategy generally backfires in the long run, resulting in potential losses.

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Bharti Joshi

Lvl 4
2y ago

A bear market is the opposite of a bull market. A bear market is when stock prices are going down; and a bull market is when stock prices are going up.As long-term investors, it's our job to help protect you from losing money in the market. Part of safeguarding your assets includes making sure you're not investing in stocks that are on the verge of entering into a bear market.

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Wiki User

9y ago

A bear market is defined by falling securities prices that cause people to continue to sell because they fear a loss. Generally, a loss of 20 percent or more in two months is considered the beginning of a bear market.

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dylanbarley

Lvl 2
3y ago

According to the top authority site, Investopedia,

"Bear markets only occur when market price decline by over 20%, often accompanied by negative investor sentiment and declining economic prospects".

According to market history, the bear market sustains a long time.

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Adrianna Tolliver

Lvl 4
3y ago

A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment. ... Bear markets also may accompany general economic downturns such as a recession.

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Julie Parks

Lvl 4
3y ago

Stock Trading for a Living - Free Beginners Course

Many people dream of making money with stock trading, and others simply wonder from time to time if it can be done. Thousands of investors make money playing the markets every day, and though the biggest gains are the most exciting and what makes headlines, there’s plenty of nuance and lots of slow-building wins for stock traders.

Learning how to make money trading stocks will take time, but is an achievable goal. Stock trading is a risky activity. If you try it out, you’ll need to plan for losses, some companies win and some lose every day. But with ongoing research and an understanding of which companies are worth investing in and why, you can make money trading stocks.

ht tps :// bullish bears .com /basic -course

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Brady Chen

Lvl 5
4y ago

A stupid market that sells bears

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Brady Chen

Lvl 5
4y ago

and the bear attacks you

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Nubia Snaer

Lvl 4
2y ago

some kind of store

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Continue Learning about Finance

A downward trend in the stock market?

bear market


What does the stock market do in a bear market?

Anyone who is even vaguely familiar with stock market has probably heard of the terms bull market and bear market. Bull market and bear market are terms that describe the market trend. A bull market means there is an upward trend in the stock market, while a bear market indicates a downward trend.In a bear market, negative sentiment and pessimism prevails in the market due to falling prices of stocks. It's sort of a vicious circle as investors, looking to book profits or cut losses, start selling their stocks. The selling activity reaches a fervent pitch, bringing down the prices further and adding to the prevailing negativity.Stock market may seem like an attractive investment option, but you need to be an expert at following and reading the market if you want to make profits. What can help is enlisting the services of a professional broker. For example, online stock trading company GEPL offers retail equity broking services that investors can use to reach their financial goals.goes down


What is the term for the downward trend in stock prices?

Bear Market


What Fundamental analysis of a company's stock focuses on?

The company's traits such as revenues and earnings per share Overall trends in the market such as bull and bear markets Overall trends in the market such as bull and bear markets


Fundamental analysis of a company's stock focuses on what?

The company's traits such as revenues and earnings per share Overall trends in the market such as bull and bear markets Overall trends in the market such as bull and bear markets

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