Bear Market

sfg-2026
ForumIAS LATEST
  1. 04 June | MGP Strategy Series | GS Paper 4 (Ethics) with AIR 7 A.R. Rajah Mohaideen Click Here to register for the session →
  2. 04 June | GS Advance Program begins from 4th June 2026 | First 2 classes open to all Click Here to register for the event →
  3. 05 June | MGP Strategy Series | GS Paper 3 Strategy Session with AIR 406 Mannat Luthra Click Here to register for the session
  4. 06 June | Open Orientation on Essay Guidance Program (EGP 2026) Click Here to register →
  5. 07 June | Open Orientation for Current Affairs for Mains 2026 Click Here to register →
  6. 07 June | Sociology Optional Strategy Session with AIR 10 Ujjwal Priyank Click Here to register →

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. 

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.
Print Friendly and PDF
Blog
Academy
Community