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How do I invest during a bear market?

A bear market is a prolonged period of falling prices (in the order of 25%) in the stock or bond markets. In the stock market it is caused by the anticipation of a declining economy. In the bond market it is caused by rising interest rates. The beginning and end of a bear market are difficult, if not impossible, to predict.

The origin of the term is lost in the past, but we might be using it because, long ago, "bear skin jobbers" were known for selling bear skins that they did not own; i.e., the bears had not yet been caught. This was the original source of the term "bear." This term eventually was used to describe short sellers, speculators who sold shares that they did not own, bought after a price drop, and then delivered the shares. Short sellers, who essentially borrow a security from a broker to sell into the market and then buy it back later at a lower price, benefit in a bear market.