net_left adver left

Explainer-What is a bear market?

Wednesday, June 15, 2022
Explainer-What is a bear market? © Reuters. FILE PHOTO: A person walks by the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., May 19, 2022. REUTERS/Andrew Kelly

By David Randall, Lewis Krauskopf and Noel Randewich

NEW YORK/OAKLAND (Reuters) - The S&P 500 index, the most closely followed benchmark for U.S. equities on Wall Street, has slid this year as inflation jumped to its highest rate in 40-years.

On Monday, a steep selloff triggered by fears that the Federal Reserve will raise interest rates at its meeting on Wednesday above prior expectations left the S&P 500 down more than 20% from its record high in January, confirming in the vernacular of many on Wall Street that it is in a bear market.

But what does that term mean?

WHAT IS A BULL AND A BEAR MARKET?

On Wall Street, the terms "bull" or "bear" markets are often used to characterize broad upward or downward trends in asset prices. But not all analysts define bull or bear markets the same way, and some investors use the terms loosely.

S&P Dow Jones Indices defines a bull market in the S&P 500 as a 20% rise from its previous low. It ends at the final peak before a subsequent decline of 20%.

It defines a bear market as a decline of at least 20% in the S&P 500 from its previous peak. It ends when the index reaches its low before then going on to set a new high. S&P uses closing prices for its calculations.

Bull markets in both stocks and bonds are far more common than bear markets. While the S&P 500 has notched 12 bear markets since 1948, some bull markets have lasted 10 years or longer. U.S. bonds, meanwhile, were in a 40-year long bull market that some analysts say has only recently ended.

HOW DO YOU KNOW WHEN YOU SWITCH FROM ONE TO THE OTHER?

Bull markets in stocks typically coincide with an expanding economy or a rebound after a short-term slump.

Bear markets, meanwhile, often lead into a recession and last until investors think that the worst of the economic downturn is behind them. Nine of the 12 bear markets since 1948 have been accompanied by recessions, according to investment research firm CFRA.

HOW LONG DO BEAR MARKETS LAST?

According to CFRA, S&P 500 bear markets since 1946 have taken an average of 389 calendar days to bottom, and then another two years to return to their prior high.

But there is a broad range. The last bear market in early 2020 took only 33 days to bottom, while the dot-com bubble bear market 20 years ago required 929 days to bottom, according to CFRA.

WHAT ARE THE DEFINING FEATURES OF THIS ONE?

Previously highly valued growth stocks have been badly punished in recent months by investors worried that rising interest rates will force consumers to tighten their belts.

Within the S&P 500 technology sector index, 91% of stocks were currently down 20% or more from their highs as of Tuesday, including PayPal (NASDAQ:PYPL) Holdings, which has now tumbled 77% from its record high last July.

Among stocks in the S&P 500 consumer discretionary index, 88% are in bear markets, including Etsy (NASDAQ:ETSY), down 77% from its record high, and Carnival (NYSE:CCL) Corp, down 68% from its high.

Within the communication services sector index, Facebook-owner Meta Platforms has slumped 57% from its 2021 high, and Walt Disney (NYSE:DIS) Co has fallen 50%.

The stock market's recent tumble has cooled valuations that in 2020 reached their highest level since the dot-com era. The S&P 500 is now priced at about 17 times expected earnings, which is in line with its average forward PE over the past 10 years, according to Refinitiv data.

Leave your comment
HOT AUTO TRADE BOT SOFTWARE adver right
APPROVED BROKERS
net_home_top HOT AUTO TRADE BOT SOFTWARE
27-06-2022 21:50:45 (UTC+7)

EUR/USD

1.0591

+0.0037 (+0.35%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

EUR/USD

1.0591

+0.0037 (+0.35%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

GBP/USD

1.2298

+0.0036 (+0.29%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

USD/JPY

135.15

-0.03 (-0.02%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (11)

AUD/USD

0.6940

-0.0008 (-0.12%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

USD/CAD

1.2885

-0.0008 (-0.07%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

EUR/JPY

143.12

+0.46 (+0.32%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (10)

Sell (0)

EUR/CHF

1.0134

+0.0024 (+0.24%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (3)

Sell (3)

Gold Futures

1,826.85

-3.45 (-0.19%)

Summary

Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (0)

Sell (5)

Silver Futures

21.360

+0.201 (+0.95%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (0)

Copper Futures

3.7778

+0.0333 (+0.89%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Crude Oil WTI Futures

108.90

+1.28 (+1.19%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (10)

Sell (0)

Brent Oil Futures

110.33

+1.23 (+1.13%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Natural Gas Futures

6.271

-0.010 (-0.16%)

Summary

Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (4)

Sell (1)

US Coffee C Futures

220.95

-2.30 (-1.03%)

Summary

Neutral

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (6)

Sell (2)

Euro Stoxx 50

3,541.45

+8.28 (+0.23%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (0)

S&P 500

3,915.48

+3.74 (+0.10%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

DAX

13,185.16

+67.03 (+0.51%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (0)

FTSE 100

7,267.65

+58.84 (+0.82%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (10)

Sell (0)

Hang Seng

22,229.52

+510.46 (+2.35%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (8)

US Small Cap 2000

1,772.45

+9.99 (+0.57%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

IBEX 35

8,234.50

-9.60 (-0.12%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (10)

Sell (0)

BASF SE NA O.N.

42.830

+0.615 (+1.46%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (8)

Sell (1)

Bayer AG NA

59.42

+1.63 (+2.82%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (10)

Sell (1)

Allianz SE VNA O.N.

181.20

0.00 (0.00%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (2)

Adidas AG

171.73

+1.37 (+0.80%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (8)

Sell (1)

Deutsche Lufthansa AG

5.969

+0.003 (+0.05%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (5)

Sell (2)

Siemens AG Class N

104.02

+1.40 (+1.36%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Deutsche Bank AG

8.847

-0.072 (-0.81%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (8)

Sell (0)

 EUR/USD1.0591↑ Buy
 GBP/USD1.2298↑ Buy
 USD/JPY135.15↑ Sell
 AUD/USD0.6940↑ Buy
 USD/CAD1.2885↑ Sell
 EUR/JPY143.12↑ Buy
 EUR/CHF1.0134Neutral
 Gold1,826.85Sell
 Silver21.360↑ Buy
 Copper3.7778↑ Buy
 Crude Oil WTI108.90↑ Buy
 Brent Oil110.33↑ Buy
 Natural Gas6.271Buy
 US Coffee C220.95Neutral
 Euro Stoxx 503,541.45↑ Buy
 S&P 5003,915.48↑ Buy
 DAX13,185.16↑ Buy
 FTSE 1007,267.65↑ Buy
 Hang Seng22,229.52↑ Sell
 Small Cap 20001,772.45↑ Buy
 IBEX 358,234.50↑ Buy
 BASF42.830↑ Buy
 Bayer59.42↑ Buy
 Allianz181.20Neutral
 Adidas171.73Buy
 Lufthansa5.969Neutral
 Siemens AG104.02↑ Sell
 Deutsche Bank AG8.847↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,775/ 6,845
(15/ 5) # 1,667
SJC HCM6,790/ 6,860
(5/ -5) # 1,683
SJC Hanoi6,790/ 6,862
(5/ -5) # 1,685
SJC Danang6,790/ 6,862
(5/ -5) # 1,685
SJC Nhatrang6,790/ 6,862
(5/ -5) # 1,685
SJC Cantho6,790/ 6,862
(5/ -5) # 1,685
Cập nhật 27-06-2022 21:50:48
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,825.69-5.27-0.29%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-V33.47034.130
RON 95-III32.87033.520
E5 RON 92-II31.30031.920
DO 0.05S30.01030.610
DO 0,001S-V30.81031.420
Dầu hỏa 2-K28.78029.350
ↂ Giá dầu thô thế giới
WTI$107.88-2.45-2.33%
Brent$110.43-2.38-2.20%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD23.080,0023.390,00
EUR23.932,6125.273,13
GBP27.815,2929.001,83
JPY167,64177,48
KRW15,5718,97
Cập nhật lúc 18:53:21 27/06/2022
Xem bảng tỷ giá hối đoái
adver main right