- Bear Market
- Prolonged price decline
- Securities fall 20% or more from recent highs
- Widespread pessimism and negative investor sentiment
- Decline in overall market index
- Decline of 2 more months or more.
- Can me cyclical or long term
- There are ways to make money in a bear market. Short selling is an example.
- This is very dangerous.
- Stock prices follow or even lead future expectations.
- If companies aren’t meeting their targets financially, people get scared and this shows in how they buy and sell the market.
- Bear markets are usually caused by a stalling or sluggish economy. Some signs are: low employment, low disposable income, weak productivity and drop in business profits.
- A bear market should not be confused with a correction. A correction is sudden and short in duration. This is a good time to get into the market.
- Tell lady walking her dog story
