Bear market
This is traditionally defined as a 20% drop in a stock index and signals a crisis of confidence among investors. Some experts have argued for more useful definitions that capture longer-term trends. Ritholtz Wealth Management Chairman Barry Ritholtz has floated the idea of a “secular bear market,” marked by a period of “increased volatility, frequent cyclical rallies and retreats in an economically challenging environment.” There are various theories as to why bears became associated with investor pessimism. One relates to the animal’s fighting style. Another traces the term back to the sale of bear fur in the 18th century.
With US President Donald Trump resisting pressure to reverse his trade tariffs and major economies facing the risk of a recession, it’s hard to navigate the turbulence in global markets.
Investors often use unfamiliar, technical language when markets are moving sharply, so here’s a glossary of terms you may be hearing and what they mean.
