Retreat

A retreat is a term used in the movement of assets such as indices, bonds and equities. It refers to the continuous fall in price, usually by a large amount. Typically, a retreat will occur after prices have either been rising or not moving for a period of time.

Retreats are caused by simple supply and demand economics. When there is a lack of demand or large supply for an asset, the price will fall accordingly.

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Retained Earnings
• Fraud Triangle
• Accounts Receivable Turnover Ratio
• Marginal Cost Formula
• Nash Equilibrium