"What is a bear market?"
Nora wonders to herself, knowing that this is the sort of thing she should probably understand and if she doesn’t take immediate action will continue to mentally gloss whenever she hears the term (and she’s been hearing it quite often as of late).
A bear market is described as being accompanied by widespread pessimism. Investors anticipating further losses are motivated to sell, with negative sentiment feeding on itself in a vicious circle.
[…]
According to The Vanguard Group, “While there’s no agreed-upon definition of a bear market, one generally accepted measure is a price decline of 20% or more over at least a two-month period.”
Well, gee. Thanks, friends.
This next tidbit from Investopedia is just confusing:
When you see a bear what do you do? Tuck in your arms and play dead! Fighting back can be extremely dangerous because it is quite difficult for an investor to make stellar gains during a bear market unless he or she is a short seller.
If I saw a bear I would NOT play dead. I would unfurl myself to my full 5’6” height and say RAAARRRRRR!
And that, in a nutshell, is why I am a financial failure.
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The Great American Cooking Project
Notes from others: