TO BOTTOM OUT refers to the lowest point in a trend, particularly in the context of the financial markets. It can be used when describing inflation, sales and prices. To bottom out means that a downward trend has come to an end and that the trend will soon start to rise. In most cases, to bottom out is used to indicate that the worst is over and that share prices, for example, will bounce back, recover, rebound, or at least start to pick up. Indeed, when equity markets have been falling steadily over a period of time, analysts and commentators often refer to 'the bottom' of the market and the term 'bottom fishing' refers to the practice of buying shares which appear to have been oversold and which are therefore cheap in the eyes of some investors. Before beginning an upward trend, prices or sales can be described as being in a trough or at a low point. The opposite of to bottom out is the verb to peak. In many countries, consumer spending tends to peak in mid-December, in the run-up to Christmas and subsequently falls-off in January.
