What is a bear market | INDmoney Classroom #2

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  • Why bear market?
  • Why bear market in US?
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  • reasons of bear market
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  • What is a bear market?

    A declining market in which stock prices fall 20% or more from the recent high and there is a lot of pessimism and negative investor sentiment is known as a bear market. Currently US stocks market is in bear market zone.

  • Is it good to buy in a bear market?

    Long term investors wait for such an opportunity - since the price of quality stocks is a bit cheaper, they buy for the long term and let their wealth compound.

  • How long does bear market last?

    Historically, on average, the bear market lasts for around 1-year and during this time, the stock market index falls by 32% on average.

  • Why is It called a bear market?

    The falling market (more than 20% fall from recent highs) is known as a bear market - drawing an analogy of the way a bear attacks its prey - swiping its paws downward. 

  • When was the last bear market?

    We are in a bear market right now in the US - In June 2022, the S&P 500 entered into a bear market after crashing more than 20% from the highs it made in January 2022.

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