Bear Market

Bear Market

A market condition in which the prices of securities are falling or are expected to fall. Although figures can vary, a downturn of 15%-20% or more in multiple indexes (Dow or S&P 500) is considered an entry into a bear market.

Investopedia Commentary

When you see a bear what do you do? Tuck in your arms and play dead! Fighting back can be extremely dangerous. 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

Cyclical Versus Non-Cyclical Stocks
The Short And Distort - Stock Manipulation In A Bear Market
Capitulation Defined

See also: Bear, Bear Raid, Bull, Bull Market, Capitulation, Flight to Quality, Index, Sell Short

bear market

An extended period of general price declines in an individual security or other asset, such as silver or real estate; a group of securities; or the securities market as a whole. Nevertheless, even during widespread bear markets, it is possible to have bull markets in particular stocks or groups of stocks. For example, stocks of gold-related companies often move against major trends in the security markets. Compare bull market.