Bear Market

A bear market is defined as a financial market in which prices are falling or are expected to decline. This designation is most commonly used in the stock market, though can also be applied to other markets as well, including real estate, foreign exchange, commodities, etc.A bear market differs from periodic declines in assets by virtue of its duration, not frequency. For example, a bear market will typically see extended periods during which large numbers of stock share prices are falling over months, or possibly even years.Bear Markets ExplainedLike any asset, movements are driven by speculation and by extension levels of optimism in markets. In the case of bear markets, investor confidence is weak and a driver of assets in a downward direction. Of course, there are multiple factors at work with any sustained or directional push of asset prices. This influences speculation, psychological effects, and other external stimuli. Oftentimes, bear markets do not have a clear start or end point, nor do they use any specific metrics in their analysis or identification. Rather, the case of the stock market can help define a bear market. For example, if stock prices fall by 20%, typically after a rise of 20% and before a second 20% rise, then it can be surmised that a bear market is in effect.Moreover, bear markets are notoriously difficult to forecast, though there are also several different factors that exist that can help usher a bear market as well. Bear markets commonly take place when the economy is shrinking or during periods of weakness, turmoil, or uncertainty.This is supported by weak gross domestic product (GDP) readings and a sustained rise in unemployment or declines in corporate profits. Investor confidence is also a notable determinant, which tends to have a sustained fall during a bear market period.
A bear market is defined as a financial market in which prices are falling or are expected to decline. This designation is most commonly used in the stock market, though can also be applied to other markets as well, including real estate, foreign exchange, commodities, etc.A bear market differs from periodic declines in assets by virtue of its duration, not frequency. For example, a bear market will typically see extended periods during which large numbers of stock share prices are falling over months, or possibly even years.Bear Markets ExplainedLike any asset, movements are driven by speculation and by extension levels of optimism in markets. In the case of bear markets, investor confidence is weak and a driver of assets in a downward direction. Of course, there are multiple factors at work with any sustained or directional push of asset prices. This influences speculation, psychological effects, and other external stimuli. Oftentimes, bear markets do not have a clear start or end point, nor do they use any specific metrics in their analysis or identification. Rather, the case of the stock market can help define a bear market. For example, if stock prices fall by 20%, typically after a rise of 20% and before a second 20% rise, then it can be surmised that a bear market is in effect.Moreover, bear markets are notoriously difficult to forecast, though there are also several different factors that exist that can help usher a bear market as well. Bear markets commonly take place when the economy is shrinking or during periods of weakness, turmoil, or uncertainty.This is supported by weak gross domestic product (GDP) readings and a sustained rise in unemployment or declines in corporate profits. Investor confidence is also a notable determinant, which tends to have a sustained fall during a bear market period.

A bear market is defined as a financial market in which prices are falling or are expected to decline.

This designation is most commonly used in the stock market, though can also be applied to other markets as well, including real estate, foreign exchange, commodities, etc.

A bear market differs from periodic declines in assets by virtue of its duration, not frequency.

For example, a bear market will typically see extended periods during which large numbers of stock share prices are falling over months, or possibly even years.

Bear Markets Explained

Like any asset, movements are driven by speculation and by extension levels of optimism in markets.

In the case of bear markets, investor confidence is weak and a driver of assets in a downward direction.

Of course, there are multiple factors at work with any sustained or directional push of asset prices.

This influences speculation, psychological effects, and other external stimuli.

Oftentimes, bear markets do not have a clear start or end point, nor do they use any specific metrics in their analysis or identification.

Rather, the case of the stock market can help define a bear market. For example, if stock prices fall by 20%, typically after a rise of 20% and before a second 20% rise, then it can be surmised that a bear market is in effect.

Moreover, bear markets are notoriously difficult to forecast, though there are also several different factors that exist that can help usher a bear market as well.

Bear markets commonly take place when the economy is shrinking or during periods of weakness, turmoil, or uncertainty.

This is supported by weak gross domestic product (GDP) readings and a sustained rise in unemployment or declines in corporate profits.

Investor confidence is also a notable determinant, which tends to have a sustained fall during a bear market period.

Technical Analysis

Dow down over 20% from the high. Enters bear market territory.

Dow

Dow down over 20% from the high. Enters bear market territory.

  • Dow confirms bear market
Greg Michalowski
Greg Michalowski
Friday, 23/09/2022 | 16:24 GMT-0
23/09/2022 | 16:24 GMT-0
Education
Sponsored

Bitcoin: too early to buy

BTC

Bitcoin: too early to buy

  • The end of the second quarter of 2022 was the worst for bitcoin in 11 years
Monday, 04/07/2022 | 08:23 GMT-0
04/07/2022 | 08:23 GMT-0
News

Bitcoin nears $18,000 in 12th day of declines; Ethereum breaks $1000

Bitcoin nears $18,000 in 12th day of declines; Ethereum breaks $1000

  • Unbelievably bad losing streak
Adam Button
Adam Button
Saturday, 18/06/2022 | 19:15 GMT-0
18/06/2022 | 19:15 GMT-0
Technical Analysis

Dow working toward bear market territory

Dow industrial average

Dow working toward bear market territory

  • Down -19.5%
Greg Michalowski
Greg Michalowski
Thursday, 16/06/2022 | 19:02 GMT-0
16/06/2022 | 19:02 GMT-0
Technical Analysis

No surprise, US stocks open lower. S&P down over 20% and NASDAQ index down 32% from highs

S&P index

No surprise, US stocks open lower. S&P down over 20% and NASDAQ index down 32% from highs

  • S&P down over 20% and moves to new lows going back to early March 2021
Greg Michalowski
Greg Michalowski
Monday, 13/06/2022 | 13:41 GMT-0
13/06/2022 | 13:41 GMT-0
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}