ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The impact of a bear market on the nation’s wealth can be devastating, but they tend to last a surprisingly short amount of time. In fact, the average bear market lasts just 9.6 months. So in most cases, the stock market downturn is over in less than a year.

Detailed explanation-2: -A bear market is a situation where the stock market in general witnesses a prolonged price dip. This could be in the form of a price correction or time correction or both. A stock market is generally bearish if the stock prices decline by 20% or more from its recent high.

Detailed explanation-3: -Stage one is recognition. Almost everybody shrugs off a bear market’s initial slide as being an ordinary event. The markets rise, and they fall.

Detailed explanation-4: -A bear market is typically defined as a market that falls more than 20% from its most recent peak. According to Wall Street veteran Bob Farrell, who combined technical analysis with various measures of investor sentiment, a bear market has three stages-sharp down, reflexive rebound, and drawn-out fundamental downtrend.