Investment Glossary

A financial market characterized by falling prices. A bear market is not the same as a market correction; a correction is a short-term trend that has a duration of less than two months, whereas bear markets can last for an average of six months or more. While corrections are often a great place for a value investor to find an entry point, bear markets rarely provide great entry points, as timing the “bottom” or end of the bear market and a return of sustained increases can be very difficult to gauge. Trying to recoup losses made by miscalculation in a bear market can be very risky because it is quite difficult for an investor to make meaningful gains during a bear market unless it is through short selling.