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A bear market is when stock prices fall by 20% or more from recent highs, often due to widespread pessimism and economic concerns.
In Depth
A bear market is a period where the stock market experiences a significant and sustained decline, typically defined as a drop of 20% or more from its peak. This usually reflects a general downturn in the economy, investor fear, and negative sentiment. During a bear market, investors often sell off stocks, leading to further price decreases. It can be a challenging time for investors, but it also presents potential opportunities for long-term buyers.
Example
Many investors became concerned about their portfolios during the bear market of 2008.