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Navigating Bear Markets
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Types of bear markets
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Are there different types of bear markets? Check out this video to know more.
There are 3 types of bear markets - structural, cyclical and event-driven markets. Structural bear markets are caused by structural imbalances in the economy. For instance, during the 2008 financial crisis, we had a structural bear market. Cyclical bear markets occur as a normal course of the business cycle. High inflation, rising interest rates and decreasing corporate profits lead to a cyclical bear market. And lastly, an event-driven bear market is caused by specific events. For example, the bear market caused by the COVID-19 pandemic is event-driven. So, these are the three types of bear markets. To learn how long bear markets last, head to the next chapter of Smart Money.