Barry Ritholtz, Columnist

How to Spot a Bull or Bear Market

Defining a market by percentage changes doesn't offer the insight needed to make investment decisions.

Who's in charge now?

Photographer: Alex Kraus/Bloomberg
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What is a bear market?

The popular definition is a 20 percent drop from peak to trough in multiple broad market indexes. I have seen similar round numbers in other definitions -- e.g., a correction is a 10 percent decline, a dip is a 5 percent drop and a crash is a fall of 30 percent or more.