Bear Market

Bear Market Latest News

S&P 500 —- a stock market index that tracks the performance of 500 of the largest publicly traded companies in the US — briefly entered bear market territory for the first time since 2022 recently.

About Bear Market

• A bear market is a financial market experiencing prolonged price declines, generally of 20% or more. 
• A bear market usually occurs along with widespread investor pessimism, large-scale liquidation of securities and other assets, and a weakening economy.
• A bear is an investor who expects prices to decline and, on this assumption, sells a borrowed security or commodity in the hope of buying it back later at a lower price, a speculative transaction called selling short.
• Bear markets are often associated with declines in an overall market or index, but individual securities or commodities can also be considered to be in a bear market if they experience a decline of 20% or more over a sustained period of time, typically two months or more. 
• Bear markets also may accompany general economic downturns such as a recession. 
• They are seen as the opposite of upward-trending bull markets.

Bear Market FAQs

Q1. What is a bear market in economics?

Ans. A bear market occurs when stocks fall 20 percent from a recent peak. 

Q2. What is the longest bear market in history?

Ans. The longest bear market in history for the U.S. stock market occurred during the Great Depression, starting after the 1929 stock market crash.

Q3. What is the term for an investor who expects prices to decline and acts accordingly?

Ans. Bear

Source: IE