Bear Market
A prolonged decline in asset prices, commonly a drop of 20% or more.
A bear market is a sustained fall in prices accompanied by pessimistic sentiment, usually marked by a decline of at least 20% from a recent peak. For long-term investors, bear markets can be opportunities to keep buying at lower prices, but they also test discipline.
Examples
- A stock index falling 25% from its high and staying low for months is a bear market.