When a market is said to be bearish, analysts are forecasting a downturn of the market or stock often caused by news reports or financial statements. However, as an investor, a bear market does not mean you cannot profit during the down time. By using options and shorting stocks, investors still have the opportunity to make money.
Corrections occur when a new commodity price is established, often after a trade barrier is removed, and due to the price change, the market shifts to a new equilibrium. With the several moving components to a correction, sectors within the market will change accordingly giving investors an interesting time period to play the market.