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What is a Bear Market

20 October 2008 6,607 views No Comment

The name bear market comes probably from an old dutch saying “Don’t sell the bears skin before you shoot him”

A Bear market has no real definition but it stands for a large widespread pessimisms under the investors and they anticipate that prices will drop even further. Prices that drop over a long period of time with more then 20% are the signs of a bear market

The most famous bear markets from the last 100 years were in the period 1929-1932 and 1973-1982. The first was called the great depression and started with the stockmarket collapse in October 24, 1929 which was called black thursday. The monday and tuesday after that were also days of significant ricedrops and were called black monday and black tuesday.

Are we in a bear market today? Well….prices dropped more then 20% and has been over a longer period and sentiment at the market is no good if you ask the majority. So yes I guess yo can say we are in a bear market.

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