What Is A Bear Market?

Answering the question "What is a bear market?" could clearly be very quick and easy or shockingly complex! We have tried to offer a conclusive bear market definition elsewhere. However, should you be hoping for a more indepth discussion of the complexities and impacts of bear markets, this is the page for you!

In his book, "After A Crash: Bear Market Money Making", 'Uncle' Harry Schultz describes some of the effects of the 21 bear markets seen between 1900 and 1987. He describes the index as losing between 13.9% and 90% in the different downward periods. Clearly, adding these losses together totals an enormous amount of money.

He also points out that these losses are for the index. Some stocks will have moved very differetly to the average producing many differing results for individuals. In addition, the index only tracks the biggest 'blue chip' companies. These firms are likely to have lost far less value than their smaller counterparts.