Bearish/Bear Market

A bear market is a market condition in which the prices of securities are falling or are expected to fall. The term “bear market” is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies, and commodities. A bear market is typically associated with widespread pessimism, and investors anticipating further declines in prices.

History of the Term

The term “bear market” is thought to have originated in the 17th century, when it was used to describe a market in which prices were falling. The term was derived from the way bears attack their prey, by swiping their paws downward. The term was first used to describe the stock market in the early 1900s, when it was used to describe a market in which prices were falling.

The term “bear market” is often used in contrast to a “bull market,” which is a market in which prices are rising or are expected to rise. The terms “bull” and “bear” are thought to have originated from the way in which each animal attacks its prey. Bulls attack by thrusting their horns upward, while bears swipe their paws downward.

Comparison Table

Summary

A bear market is a market condition in which the prices of securities are falling or are expected to fall. The term “bear market” is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies, and commodities. A bear market is typically associated with widespread pessimism, and investors anticipating further declines in prices. For more information about bear markets, investors can visit websites such as Investopedia, The Balance, and MarketWatch.

See Also

• Bull Market
• Market Correction
• Market Crash
• Market Cycle
• Market Risk
• Market Volatility
• Securities
• Bear Trap
• Short Selling
• Technical Analysis

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