Bear Market

In a bear market, the prices of assets illustrate a declining trend and the market experience slower volume activity and displays lack of confidence. It is a transition from high investor optimism to widespread investor fear and pessimism. Conversely, when prices are increasing it is termed as bull market. The terms ‘bear’ and ‘bull’ are derived from the way in which each animal attacks its opponents; i.e., a bull will thrust its horns up into the air, while a bear will swipe it down. These actions are related metaphorically to the movement of a market: if the trend is up, it is considered a bull market; if the trend is down, it is a bear market.

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