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News: Global stock markets continue to plunge as United States President Donald Trump showing no signs of backing away from the sweeping tariffs that he has announced. Bear Market.
About Bear Market
- Definition: It is a situation when the stock market experiences price declines over a period of time.
- Generally, it is declared when a stock index sinks at least 20% from its last peak state.
- Opposite to Bull Market: A bear market is the opposite of a bull market, which refers to when a stock index has increased at least 20% from its recent low.
- Bear market Vs Market correction: A bear market is different from a market correction which occurs when there is a decline of at least 10% or more.
- Reasons: When investors are more motivated to sell than to buy stocks due to reasons like-
- A weak or slowing economy, the anticipation of an economic slowdown, or investor sentiment that the market is too hot and prices too high.
- Events that are not purely economic — such as wars, oil supply shocks, etc.
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