Bear market

Bear market

Introduction


Bear market is a situation when the stock market experiences price declines over a period of time. Generally, a bear market is declared when the price of an investment falls at least 20% from its high. In other words, a trend of falling stock prices for an extended period is considered a bear market.
Bear market is the industry specific jargon which indicates a download trend in the overall condition of the market. It means that the cumulative market price of the stocks, listed on the stock market are declining .if the stock price of a particular stock is plunging it's considered to be bearish.Bear market is typically caused by investors pessimism,fear and negative sentiment about the market or the economy.

Why call is bear market.

The bear market phenomenon is thought to get its name from the way in which a bear attacks its prey—swiping its paws downward. This is why markets with falling stock prices are called bear markets.


Why Is It Called a "Bull" Market When Prices Go Up?


The actual origin of the term "bull" is subject to debate. The terms "bear" (for down markets) and "bull" (for up markets) are thought by some to derive from the way in which each animal attacks its opponents. That is, a bull will thrust its horns up into the air, while a bear will swipe down. These actions were then related metaphorically to the movement of a market. If the trend was up, it was considered a bull market. If the trend was down, it was a bear market.

Bear market and recesstion .

We live in a period of opportunity. Even in the face of a bear market or recession, we still have the opportunity to improve our lives financially. 

The coronavirus pandemic may have threatened your employment, monetary freedom, or retirement goals. Still, it is an opportunity to bolster our understanding of how our finances work, and build towards a better future.

Bear markets and recessions are part of the natural economic life cycle and any economic trouble is temporary. With that being said, it is an excellent time to prepare in case an extended economic downturn is looming.

History of Bear market.

We live in a period of opportunity. Even in the face of a bear market or recession, we still have the opportunity to improve our lives financially. 
The coronavirus pandemic may have threatened your employment, monetary freedom, or retirement goals. Still, it is an opportunity to bolster our understanding of how our finances work, and build towards a better future.

Bear markets and recessions are part of the natural economic life cycle and any economic trouble is temporary. With that being said, it is an excellent time to prepare in case an extended economic downturn is looming.

What happens to mutual funds in Bear market.


Since the equity mutual funds are dependent on the stock market, the bear phase affects mutual funds. When the stock prices go down, the Net Asset Value (NAV), which is the per-unit cost of the mutual fund scheme, also goes down; and vice versa.


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