What is a bear market in simple terms?
A bear market occurs when the market experiences a drop in prices for a long period of time. It generally describes a situation in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.
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A Bear Market is typically defined by prolonged declines of 20 % or more from recent market highs . In a bear market , prices are continuously dropping.
Bear markets are often associated with declines in the overall market or indices such as the S&P 500, but individual securities or commodities are also considered bear markets if they experience a 20% or more decline over a sustained period – usually two months or more. Bear markets can be compared with bull markets.
Bear markets can be cyclical or long-term. The first lasts for a few weeks or two months and the latter can last for many years or even decades.
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