Bear Markets

A bear market occurs when stock prices decline by 20% or more from recent highs, reflecting widespread pessimism among investors. It often signifies economic slowdown or uncertainty, leading to reduced investment and consumption. During this period, many investors are cautious, and portfolio values tend to decrease. Bear markets can last months or even years, but they are typically followed by periods of recovery and growth. Understanding this helps investors manage risk and remain focused on long-term financial goals despite short-term downturns.