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It seems like an arbitrary threshold. It’s not like magically the market as soon as it crosses this arbitrarily defined line, we can now officially call it a “B
by spectramax 7y ago
It seems like an arbitrary threshold. It’s not like magically the market as soon as it crosses this arbitrarily defined line, we can now officially call it a “Bear market”.
On Monday, the market plunged but just shy of the bear market line. Today, it crosses it. I would have said it’s a bear market already because we can see somewhat into the future what’s gonna happen.
Does anyone know what heuristics go into determining this threshold?
- bradstewart 7y agoIt is exactly an arbitrary threshold--defined as 20% down from recent highs. https://www.investopedia.com/terms/b/bearmarket.asp https://www.investopedia.com/terms/b/bearmarket.asp EDIT: Adding source.