Bear Market Rally

DEFINITION of 'Bear Market Rally'

A period in which prices of stocks increase during a bear market. A bear market rally is usually a short-lived market increase following a period of market decline and is followed by another period of market decline leading to a pronounced down trend.

BREAKING DOWN 'Bear Market Rally'

Although there are no official guidelines for a bear market rally, it is sometimes defined as an overall market increase of 10-20% during an overall bear market. There are many examples of bear market rallies in modern stock market history, including the bear market rally of the Dow Jones following the stock market crash of 1929, which eventually saw a bottoming out in 1932.

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RELATED FAQS
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    Read about some of the signs of a bear market rally, an unpredictable bull movement that takes place in the middle of a stronger ... Read Answer >>
  2. Where do investors tend to put their money in a bear market?

  3. What are common investing mistakes in bear markets?

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