What is Bear Market?
A period when prices are falling and pessimism dominates.
A bear market is a sustained drop in prices — typically 20% or more from recent highs — accompanied by fear and everyone swearing off investing forever.
The name comes from how a bear attacks: swiping its paws downward. Bear markets are painful but are also where patient, prepared investors quietly buy quality assets on sale.
The opposite of a bull market. As the saying goes: bull markets make you money, bear markets teach you who you are.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.