A bear market is a period when the prices of financial assets, particularly stocks, decline by 20% or more from their previous highs. This period can last from several months to years and is often accompanied by investor pessimism, economic issues, or a recession. During a bear market, investors typically seek safer investments or reduce their exposure to riskier assets.
- Financial dictionary
Bear market
Bear market
Related terms
| Term | Definition |
|---|---|
| Benchmark | A benchmark is a reference value against which the performance of an investment or portfolio is compared. It is usually an index that represents a specific market or sector, such as the S&P 500 for U.S. stocks. A benchmark helps investors assess whether their investments are performing better or worse than the market and can serve as a basis for making decisions regarding investment strategies. |
| Blockchain | Blockchain is a decentralized digital database that stores records of transactions in chronological order. Each block contains transaction details, a timestamp, and a link to the previous block, creating a secure and immutable chain. Blockchain technology is the foundation of cryptocurrencies like Bitcoin but is also used in other areas where transparency, security, and immutability of data are needed, such as financial services, supply chains, and healthcare. |
| Brick & mortar | Brick & mortar refers to traditional physical stores or businesses that have premises where customers can shop or use services in person. This term is used to distinguish them from online stores (e-commerce), which operate exclusively on the internet. Brick & mortar businesses often integrate digital channels to reach a broader audience and offer customers the option to shop according to their preferences. |
| Bull market | A bull market is a period when the prices of financial assets, particularly stocks, rise by 20% or more from their previous lows. This growth is often accompanied by positive investor sentiment, optimism, and improving economic conditions. A bull market can last from several months to years and may be associated with a period of economic growth and low unemployment. |
| CAGR | CAGR (Compound Annual Growth Rate) shows the average annual return on an investment over a specific period, assuming this return was evenly distributed across each year. It is a useful tool for comparing the performance of different investments or projects, as it takes into account the effect of compound interest. It helps both investment professionals and individuals understand how their investments have developed over time. |