What is Recession?
Fear sells eyeballs In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending. Let's understand some commonly used keywords: Correction A market correction refers to a price decline of at least 10% of any security or market index following a temporary upswing in market prices. Correction: 10% Decline Bear Market During a bear market, market sentiment is negative as investors are beginning to move their money out of equities and into fixed-income securities, as they wait for a positive move in the stock market. Bear Market: 20% Decline Crash A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles. Crash: 35-60%