Sentiment Patterns During Bear Markets

Analysis of investor sentiment indicators and market psychology during major bear market periods throughout history.

Bear markets exhibit distinct sentiment patterns that provide valuable insights for timing market bottoms and understanding investor psychology during downturns.

Key Insights

Point 1

Important

Capitulation phases and sentiment extremes

Point 2

Important

Put/call ratio spikes during bear market lows

Point 3

Important

Survey-based sentiment indicators

Point 4

Important

Insider buying patterns during distressed periods

Point 5

Important

Media coverage and contrarian signals

Practical Applications

1

Look for extreme pessimism at bear market lows

2

Monitor insider buying as bottom signal

3

Use survey sentiment as contrarian indicator

4

Track margin debt reduction patterns

5

Watch for volume capitulation events