Definition

Noun: A bear market is a financial market condition characterized by a prolonged period of declining prices, typically for securities such as stocks. It is generally defined as a drop of 20% or more from recent highs, accompanied by widespread pessimism and negative investor sentiment.

Usage

The term is used to describe the overall trend and atmosphere of a financial market, not a single day's activity. It is the opposite of a "bull market." * It functions as a countable noun (e.g., a bear market, several bear markets). * It is often used with prepositions like in, during, or into.

Examples

• Noun:
  • Investors are worried that the recent volatility could signal the start of a prolonged bear market.
  • During the bear market, many technology companies saw their share prices cut in half.
  • Strategies for preserving capital in a bear market differ from those used in a bull market.

Advanced Usage

• "to be in a bear market": Describes the current state of the market.
  • The index has fallen 25%, so we are officially in a bear market.
• "a bear market rally": A temporary increase in prices during a longer-term declining trend.
  • Analysts warned that the recent gains were likely just a bear market rally and not a true reversal.

Variants and Related Words

• Bearish (adj): Describing a pessimistic market outlook or expectation that prices will fall.
  • The economist's report was very bearish on the prospects for the energy sector.
• Bear (n): An investor who expects prices to fall and may sell securities short.
  • The bears have dominated trading sentiment for the past six months.

Synonyms

• Downturn: A decline in economic or market activity. (Less specific than "bear market.")
• Down market: A simpler, more general term for a market where prices are falling.
• Slump: A sudden severe or prolonged fall in prices or activity.

Antonyms

• Bull market: A financial market condition characterized by rising prices and optimistic investor sentiment.

Noun

1. a market characterized by falling prices for securities