Sell-Off

A sell-off means a period when many investors sell assets and prices fall quickly. In simple terms, a sell-off happens when investors become worried and rush to sell. Sell-offs are important because they can show fear, uncertainty, or a sudden change in market expectations. They can happen after weak earnings, bad economic data, rising interest rates, or unexpected news. For example, if stocks drop sharply after inflation comes in hotter than expected, investors may describe it as a sell-off. A sell-off is not always the same as a bear market. A sell-off can be short and sharp, while a bear market usually means a broader and longer decline.