Bear Market – What is a Bear Market?

What is a Bear Market?
Definition of Bear Market: A Bear Market can be explained as an extended time period in which the cost of investment falls and are accompanied by extensive pessimism. If the time of falling stock, currency costs and commodity is quick and short, followed by a specific time period of rising costs, it is known as correction. Bear markets generally take place when the economy goes through a recession and the rate of unemployment is very high or when the inflation is rising at a fast rate. The most popular bear market in the history of United States was known as the Great Depression that took place in 1930, even if our existing recession has been one of the longest since that particular time period. The term “bear” is utilized in a financial perspective. While the origin of bear market is not clear, it is guessed that it might have been originated from the traders who were engaged in selling skins of bear having an expectation that the cost will decrease. Bull market is the term used for explaining the contradictory reaction of markets.