Finance
What is A bear market?
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.
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Watch a 2-minute lesson with voice + animation that explains a bear market.
Key things to understand
- 1It's a sustained drop in investment prices (often 20%+).
- 2Investor mood turns fearful and pessimistic.
- 3It's the opposite of a rising bull market.
- 4It often overlaps with economic slowdowns.
Frequently asked questions
- 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.