ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Bear markets are defined as sustained periods of downward trending stock prices, often triggered by a 20% decline from near-term highs. Bear markets are often accompanied by an economic recession and high unemployment, but bear markets can also be great buying opportunities while prices are depressed.

Detailed explanation-2: -A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.

Detailed explanation-3: -Here’s what you need to know about bear, or down, markets. Watch for 20%: Market cycles are measured from peak to trough, so a stock index officially reaches bear territory when the closing price drops at least 20% from its most recent high (whereas a correction is a drop of 10%-19.9%).

Detailed explanation-4: -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.