Bear Market

A bear market refers to a significant decline in the prices of stocks or other securities, typically defined as a drop of 20% or more from recent highs. It usually reflects widespread pessimism and negative investor sentiment about the economy or specific sectors. During bear markets, investors may be hesitant to buy, fearing further losses. These downturns can be triggered by various factors, including economic downturns, rising interest rates, or geopolitical events. While unsettling, bear markets are a natural part of the economic cycle and can present opportunities for long-term investors to buy at lower prices.