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What is a bear market?

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Quick answer

A bear market is a period when investment prices fall significantly — usually 20% or more — and pessimism spreads. It's the opposite of a rising bull market, and it often coincides with economic slowdowns or recessions. It's a sustained drop in investment prices (often 20%+).

Key things to understand

  1. It's a sustained drop in investment prices (often 20%+).
  2. Investor mood turns fearful and pessimistic.
  3. It's the opposite of a rising bull market.
  4. It often overlaps with economic slowdowns.

People also ask

What is a bear market?
A prolonged period of falling prices — typically a drop of 20% or more — and widespread pessimism.
How long do bear markets last?
They vary widely, from a few months to a couple of years, before recovery begins.
What should investors know about bear markets?
They're a normal part of market cycles; staying calm and diversified helps weather them.