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investment climate Finance Definition

The general mindset of investors. An investment climate might be extremely bullish where everything is being bought and funded, as was the case during the technology boom of the late 1990s. Or, the investment climate might be very bearish, like the markets in the several years after the market peaked in the spring of 2000 and the tech bubble burst and venture capitalists virtually quit funding new companies and the initial public offering market slowed to a trickle.