Cobalt wrote: "A common definition of a Bear market is when prices drop by at least 20% for a minimum of two months." Oil down 30% check , June 14th Check
Types of Bear Market
Just like in the fairy tale, there are three Bear markets: event-driven, cyclical, and structural. Each type refers to the factors that turn investors Bearish in the first place. Some of these are worse than others, since the causes can be harder to manage or have wider implications.
Event-driven
Event-driven Bear markets are a result of, as you can probably guess, major events. Pandemics are obvious Bear market triggers that can suddenly upset markets. Other well-known triggers are wars and oil price shocks, like the 2014 Bear oil market, which arose as a result of a production glut.
Covid-19 is the most recent example of an event-driven Bear market, though this was surprisingly short lived. Indeed, the Bear market for the S&P 500 index lasted only a month.
Cyclical
Cyclical Bear markets come from the ebbs and flows of economic cycles, usually taking place at the conclusion of a business cycle.
Interest rates often drive a cyclical Bear market. If central banks hike interest rates too far then businesses and consumers struggle to borrow money and make investments. This, in turn, leads consumers to cut their spending, hurting business profits and tanking investor sentiment.
Structural
Structural Bear markets, meanwhile, result from structural problems. These types of bear markets can often be the worst of the three since they are usually correcting a major underlying problem.
The 2008 financial crisis is perhaps the best known structural bear market, triggered by the bursting of the housing bubble.
BobbyBoy wrote: Bear market? Maybe you need to scurry back to the IVN board and continues to lose money with Trip-Advisor on thta unmitigated dog.