Bear Market Definition - Glossary

A Bear Market is when asset prices fall persistently, often causing investor pessimism and selling.

A Bear Market is a prolonged period during which asset prices decline by 20% or more. Typically, this leads to widespread investor pessimism. These markets can result from economic downturns, geopolitical events, or changes in investor sentiment. In a bear market, investors often sell off assets to minimize losses, which can further drive prices down. Bear markets can last for months or even years. Understanding market cycles helps investors make informed decisions and manage risk effectively. Recognizing the signs of a bear market can be crucial for strategic investment planning.