Stocks Enter Bear Market. What Does It Mean?

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    Nothing lasts forever — not even a stock market that keeps going up, up and up. This week, just days after its 11-year anniversary, investors unceremoniously said goodbye to the longest-running bull market in history. Then the bears took over . The Dow Jones Industrial Average entered bear market territory when it tumbled more than 20% from the record it had just set on Feb. 12. And, as of Thursday, the blue chip index was down nearly 8,400 points — a stunning 28% — from that high point. A bear market is defined as a period in which the major stock indexes drop by 20% or more from a recent high point and remain that low for at least a few months. The two worst bear markets in history — during the Great Depression and the Great Recession — produced cumulative losses of 83% and 51%, respectively. Analysts like to say that the stock market is not the economy. But a bear market reflects concerns and anxieties about the economy, and at times a bear market is accompanied by a recession. A

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