KEYTAKEAWAYS
- Explore the concept of a bear market, a period marked by falling asset prices and investor pessimism, often linked to economic downturns. Understand its impact on investment strategies and market sentiment.
TABLE OF CONTENTS
CONTENT
DEFINITION
A bear market is a financial market condition characterized by a prolonged period of declining asset prices, typically by 20% or more from recent highs. This phenomenon reflects widespread pessimism and negative investor sentiment, often triggered by economic downturns, geopolitical tensions, or financial crises.
During a bear market, investors may adopt a more cautious approach, seeking safer investments or exiting the market to minimize losses. The term contrasts with a “bull market,” where prices are rising and confidence is high.
Bear markets can present opportunities for strategic investors to buy undervalued assets, but they also pose risks of further losses.
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- CoinRank Finance Dictionary : Bull Market
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