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What is a bear market?
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10th Nov 2009 by David Becker
The definition of a bear market is a asset market where the current price is 20% below most recent high of the market. This point needs to occur without the current price increasing 20% from its most recent low. For example, The S&P 500 Index in March of 2009 hit a low of 672. This was 57% off the high reach in October of 2007 which put the S&P 500 in a bear market. In November of 2009, the S&P 500 was at a price level of 1,096, which was 30% off its high (reach in October2007), but since the low of 672 was 63% lower, the S&P 500 was not in a bear market at 1,096 in November of 2009.
The definition of a bear market is a asset market where the current price is 20% below most recent high of the market. This point needs to occur without the current price increasing 20% from its most recent low. For example, The S&P 500 Index in March of 2009 hit a low of 672. This was 57% off the high reach in October of 2007 which put the S&P 500 in a bear market. In November of 2009, the S&P 500 was at a price level of 1,096, which was 30% off its high (reach in October2007), but since the low of 672 was 63% lower, the S&P 500 was not in a bear market at 1,096 in November of 2009.
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10th Nov 2009 In Investing
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