A slang term denoting a period of poor performance or inactivity in an economy, market or industry. In economic terms, a slump specifically refers to a recession, signaling a slow down of business activity.


An industry may experience a slump when overall activity begins to decline. In the loan industry, a slump may represent a period of tight lending policies. Since it is more difficult to get a loan, overall lending volumes will drop.

Slumps apply to financial markets as well. When the stock market enters a slump, share prices and trading volume will usually be lower.

  1. Recession Resistant

    An entity which is not greatly affected by a recession. Recession ...
  2. Recession

    A significant decline in activity across the economy, lasting ...
  3. Bear Market

    A market condition in which the prices of securities are falling, ...
  4. Market Swoon

    A slang term for a decline in the overall value of the stock ...
  5. Trough

    The stage of the economy's business cycle that marks the end ...
  6. Contraction

    A phase of the business cycle in which the economy as a whole ...
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  1. Which mutual funds made money in 2008?

    Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
  2. Do interest rates increase during a recession?

    Interest rates rarely increase during a recession. Actually, the opposite tends to happen; as the economy contracts, interest ... Read Full Answer >>
  3. What are the risks of annuities in a recession?

    Annuities come in several forms, the two most common being fixed annuities and variable annuities. During a recession, variable ... Read Full Answer >>
  4. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  5. How does the risk of investing in the industrial sector compare to the broader market?

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  6. How can I hedge my portfolio to protect from a decline in the retail sector?

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