World Blog by humble servant.Comprehensive Bear Market Report: U.S. Stock Market Analysis as of April 4, 2025 Overview
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Phases of a Bear Market A bear market is generally defined as a sustained decline of 20% or more in a major stock index, like the S&P 500, from its recent peak, accompanied by widespread pessimism. It unfolds in distinct phases, though the exact timing and intensity can vary. Here’s how they typically progress: Recognition Phase This is the initial stage where the market begins to turn. Prices may still be near highs, and investor sentiment remains optimistic from the prior bull run. Early declines are often dismissed as normal fluctuations or a minor correction (a drop of 10% to less than 20%). Some investors start to sense trouble and begin selling, but most hold on, expecting a rebound. Economic indicators might still look decent, masking the shift. Panic Phase As declines deepen, fear takes hold. Stock prices fall sharply, trading activity drops, and corporate profits weaken. Economic indicators—such as employment, consumer spending, or GDP growth—start t...