BEAR MARKET Meaning and
Definition
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A bear market refers to a long-lasting period of decline and negativity characterized by falling prices, pessimism, and widespread selling in the financial markets. It is a term often associated with the stock market, but can also be used in reference to other investment markets such as commodities, bonds, and real estate.
In a bear market, the value of assets tends to drop significantly, driven by various factors such as economic downturns, geopolitical tensions, or market sentiment. As a result, investors become cautious and tend to sell their holdings, triggering a further decline in prices. The bear market sentiment is usually fueled by widespread fear, uncertainty, and the anticipation of further losses.
Typically, a bear market is marked by a sustained decline in major indexes, such as the S&P 500 or Dow Jones Industrial Average, and is often characterized by a decrease of 20% or more from recent highs. However, it is important to note that a bear market does not follow a strict percentage decline and can vary depending on the market and context.
The term "bear" comes from the way a bear attacks its prey, swiping downward with its paws, which is analogous to the downward movement of prices in a bear market. In contrast to a bear market, a bull market refers to a period of rising prices, optimism, and overall positive market sentiment.
Common Misspellings for BEAR MARKET
- vear market
- near market
- hear market
- gear market
- bwar market
- bsar market
- bdar market
- brar market
- b4ar market
- b3ar market
- bezr market
- besr market
- bewr market
- beqr market
- beae market
- bead market
- beaf market
- beat market
- bea5 market
Etymology of BEAR MARKET
The term "bear market" comes from the practice of bear-baiting, which was a popular form of entertainment in medieval Europe. During bear-baiting events, a bear would be chained to a post, and dogs would be set upon it, causing the bear to defend itself. The term "bear" was eventually used to describe someone who sells stocks in anticipation of prices decreasing. Hence, when the stock market experiences a prolonged period of declining prices, it is referred to as a "bear market". The opposite scenario, where prices are rising, is called a "bull market", which alludes to bulls' tendency to thrust their horns upward.
Similar spelling words for BEAR MARKET
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