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A bear market is one in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although there is no strict definition of a bear market, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500), over at least a two-month period is often considered to be a bear market. A bear market should not be confused with a correction, which is a short-term trend that has a duration of less than two months.
I don’t normally comment on individual stocks in this particular blog, but the MGIC situation represents a basic investment principle that is worthy of discussion here.
Read More.Price-to-Earnings ratios are probably the most widely used tool for comparing the relative values of different stocks.
Read More.This question comes up frequently when the market takes a dip.
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