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Bear Market

A Bear Market is a period when financial markets experience a prolonged decline in prices, typically defined as a drop of 20% or more from recent highs.

 

Bear markets are often associated with economic uncertainty, lower investor confidence, and increased market volatility.

 

During a bear market, many investors become more cautious and may shift their money into lower-risk assets such as bonds or cash.

Although bear markets can be challenging, they are a normal part of market cycles and have historically been followed by periods of recovery.