Mint Money Knowledge Center: What is a 'bear market'?

What is a bear marketCertain financial terms are used in a variety of circumstances, but they become most identified with the stock markets. For example, real estate investors will often talk about a "bear market" when the price of real estate continues to drop for an extended period of time. However, to most people, a bear market is the term used to describe a stock market in decline.
 

The Decline Of A Bear Market

According to InvestingAnswers.com, a bear market occurs when at least 80 percent of the securities on a market such as the New York Stock Exchange consistently drop in value by an average of 15 percent or more. When economists predict a bear market on the horizon, that usually indicates an unstable and declining economy is on the way.
 

Bear Markets Are Commonly Associated With The "R-Word"

The Northrup Grumman benefits experts indicate that a bear market is usually an indication that a recession is on the way. In some cases, the bear market could bring in the recession, or the bear market could be the result of a recession started by other sources. For example, the real estate collapse of 2008 led directly to a bear market in the NASDAQ and New York Stock Exchange that lasted for between 12 to 24 months.

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