What is a bear market?
What does it mean when they say we are in a bear market?
Posted Answers
Submitted by marketnews on Sun, 06/28/2009 - 17:50.
A:
Answer by marketnews
A Bear Market is a prolonged period in which investment prices fall, accompanied by widespread pessimism. Investors anticipating further losses are often motivated to sell, with negative sentiment feeding on itself in a vicious circle.
It is not a simple decline, but a substantial drop in the prices of the majority of stocks over a defined period of time. According to The Vanguard Group, "While there’s no agreed-upon definition of a bear market, one generally accepted measure is a price decline of 20% or more over at least a two-month period."
Answer by marketnews
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