I'm not sure who decided on the definition, but it is widely agreed
that we have a bear market when the major indices are 20% or more below
their highs. If the indices are down between 10% and 20% then they are
deemed to be in a "correction". Based on this formula, the Russel 2000
is in a bear market, the S&P 500 and Nasdaq are in corrections and
the DJIA isn't even down to the 10% threshold yet.
The folks in the media like these definitions because they are simple, easy and make for convenient headlines. They do provide a shorthand way of summing up the action, but in the present situation they are woefully understating what has really been going on for a while.
Anyone who has more than a passing interest in the market is painfully aware that the indices have done an extremely poor job of illustrating what has been going on with the average stock. A very large percentage of the market has been down trending since early 2015, and has been in a de facto bear market for a long time.
http://realmoney.thestreet.com/articles/01/14/2016/rev-forum-heres-whats-really-behind-horrible-bear-market?puc=yahoo&cm_ven=YAHOO
The folks in the media like these definitions because they are simple, easy and make for convenient headlines. They do provide a shorthand way of summing up the action, but in the present situation they are woefully understating what has really been going on for a while.
Anyone who has more than a passing interest in the market is painfully aware that the indices have done an extremely poor job of illustrating what has been going on with the average stock. A very large percentage of the market has been down trending since early 2015, and has been in a de facto bear market for a long time.
http://realmoney.thestreet.com/articles/01/14/2016/rev-forum-heres-whats-really-behind-horrible-bear-market?puc=yahoo&cm_ven=YAHOO
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