Risk, returns & timeframes illustration
1 min read
June 21, 2022
by

Let’s talk about the bear in the room

You may wanna pack yer marmalade sandwich cos the bear market has landed! 🐻 But what does it even mean? We Kiwis craft beers not bears! But there’s no need to feel sad panda. 🐼 When share prices drop, they’re effectively cheaper. Kinda like a Briscoes sale…
1 min read
June 21, 2022
by

Let’s talk about the bear in the room

You may wanna pack yer marmalade sandwich cos the bear market has landed! 🐻 But what does it even mean? We Kiwis craft beers not bears! But there’s no need to feel sad panda. 🐼 When share prices drop, they’re effectively cheaper. Kinda like a Briscoes sale…
1 min read
June 21, 2022
by

Let’s talk about the bear in the room

You may wanna pack yer marmalade sandwich cos the bear market has landed! 🐻 But what does it even mean? We Kiwis craft beers not bears! But there’s no need to feel sad panda. 🐼 When share prices drop, they’re effectively cheaper. Kinda like a Briscoes sale…
Table of contents
Getting Started Investing course
Free Getting Started Course
Take your first, or next, step to becoming a confident investor with Hatch's free online course – just 10 minutes a day, for 10 days.
The Fry up logo with fried egg
Weekly news from Wall St
Subscribe to The Fry Up - your weekly sizzle of headline-grabbing share market news. Read by 60,000 Kiwis to help them take charge of their investing journey.

Share markets have been feeling especially grizzly recently. In fact, the S&P 500 Vanguard ETF (VOO) has now fallen into what’s known as a ‘bear market’, dropping 20% from its recent peak and wiping out all of the gains made during 2021. Grrrrr. 🐻 Although 20% is a completely arbitrary number, calling it a bear market just sounds way cooler, and is a quick way to express that investing is no marmalade sandwich teddy bear’s picnic right now. 🧸 It’s not just called that in the US. The New Zealand NZX50 index has been in a bear market too, and we Kiwis craft beers, not bears!

So why’s the ‘bear market’ suddenly talk of the town? Share markets have been mauled as central banks, like the US Federal Reserve, push up interest rates to try slow charging inflation. It’s like Christopher Robin taking the honey pot away from Winnie the Pooh in the middle of his lunch. Oh bother. 🍯

There are all sorts of theories on where the name ‘bear market’ comes from. And lovable Pooh isn’t one of them. One theory is that the name bear market comes from the idea of bears retreating into hibernation to slumber through the winter chill. Crypto currencies have their own version, the dreaded ‘crypto winter’. 🥶 A bull market, on the other hand, is a market that rises because bulls charge forwards. Another theory is it’s named because bears attack down with their claws, while bulls attack by lifting with their horns and throwing up into the air.

An alternative way to think about a bear market could be thinking of it like a Briscoes sale, or a ‘buyers’ market’. Some share prices are lower in a bear market than in a bull market, so may present investing opportunities for investors who are sticking with their long-term investing plan. See? Smarter than the average bear. 🌲

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.

Join the Kiwis who are hatching their tomorrow and have invested more than $1 billion with Hatch.

Explore other articles
Tax
Money
Economy
Investing

More recent news articles

Recent learn articles

7 min read
Mar 26, 2024

Reddit IPO pops 48% then drops, then pops 31%

From meme stock to market debut, Reddit’s IPO bolted out of the gates after landing on the NYSE. Reddit stock has jumped 31% since listing, ending the first days of going public reaching nearly US$10 billion market cap. But how does Reddit make money, and why are some Redditors unhappy about proposed AI licensing?
Read more
7 min read
Mar 19, 2024

Pilots on ‘high alert’; Boeing stock nosedives nearly 30%

Not even Boeing’s defence operations can stop the aircraft maker from facing a wave of scrutiny. Legal issues are costing billions, their stock keeps dropping and now pilots don’t feel safe. But Boeing is the world’s fifth largest defence company. So what happened to ‘If it’s not Boeing, I’m not going?'
Read more
6 min read
Mar 12, 2024

Abercrombie & Fitch soars 355% eclipsing Nvidia

While all eyes pivots towards AI, iconic US fashion brand Abercrombie & Fitch has surged ahead of even Nvidia. Steady cotton pricing and low transportation costs have contributed, but surprise behaviour by Gen Z has put them head and shoulders above the rest. In 2024, what could the combination of the youth consumer and AI bring?
Read more

Related news articles

More recent learn articles

No items found.

Recent news articles

More recent learn articles

7 min read
Mar 26, 2024

Reddit IPO pops 48% then drops, then pops 31%

From meme stock to market debut, Reddit’s IPO bolted out of the gates after landing on the NYSE. Reddit stock has jumped 31% since listing, ending the first days of going public reaching nearly US$10 billion market cap. But how does Reddit make money, and why are some Redditors unhappy about proposed AI licensing?
Read more
7 min read
Mar 19, 2024

Pilots on ‘high alert’; Boeing stock nosedives nearly 30%

Not even Boeing’s defence operations can stop the aircraft maker from facing a wave of scrutiny. Legal issues are costing billions, their stock keeps dropping and now pilots don’t feel safe. But Boeing is the world’s fifth largest defence company. So what happened to ‘If it’s not Boeing, I’m not going?'
Read more
6 min read
Mar 12, 2024

Abercrombie & Fitch soars 355% eclipsing Nvidia

While all eyes pivots towards AI, iconic US fashion brand Abercrombie & Fitch has surged ahead of even Nvidia. Steady cotton pricing and low transportation costs have contributed, but surprise behaviour by Gen Z has put them head and shoulders above the rest. In 2024, what could the combination of the youth consumer and AI bring?
Read more