10 trending stories on plunging stocks: Correction or bear market?

Specialist Edward Zelles works on the floor of the New York Stock Exchange, Thursday, Aug. 20, 2015. The Dow Jones industrial average slid 358 points, also 2.1 percent, to 16,990. (AP Photo/Richard Drew)
caption arrowCaption
Specialist Edward Zelles works on the floor of the New York Stock Exchange, Thursday, Aug. 20, 2015. The Dow Jones industrial average slid 358 points, also 2.1 percent, to 16,990. (AP Photo/Richard Drew)

ExploreMore popular and trending stories

Is the recent downward trend in the stock market a sign of a bear market, where it’s difficult to predict where it will bottom out? Or is it a correction?

More trending stories

According to Infopedia.com:

“A bear market should not be confused with a correction, which is a short-term trend that has a duration of less than two months. While corrections are often a great place for a value investor to find an entry point, bear markets rarely provide great entry points, as timing the bottom is very difficult to do. Fighting back can be extremely dangerous because it is quite difficult for an investor to make stellar gains during a bear market unless he or she is a short seller.”