Definition
A bear market occurs when a market experiences prolonged price declines. It's typically defined as a 20% or more drop from recent highs. Bear markets are often associated with economic recessions and widespread pessimism.
Example
The 2008 financial crisis led to a bear market where the S&P 500 dropped nearly 57% from its October 2007 peak to its March 2009 low.
FAQ
What is Bear Market?
A market condition where prices are falling or expected to fall.
Why is Bear Market important?
Bear Market helps investors evaluate market trends and make more informed decisions.