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Bear Market
Explanation:
A gradual decline in stock prices, reflecting a transition from investor optimism to concern. It is largely a subjective designation, but most agree that a 20% decline in a stock market's value over at least a two-month period qualifies as a bear market.
Our Thoughts:
Bear markets are troublesome primarily for investors who cannot afford to leave their money in the stock market until prices rebound. Sellers during a bear market lose a lot of potential value. Conversely, they are a time of great opportunity for those who can afford to buy. This harkens back to perhaps the most basic investment strategy: "Buy low, sell high."