Quick Definition

A bear market refers to a period in which stock prices fall by 20% or more from recent highs, typically leading to widespread pessimism and negative investor sentiment.

Examples

• 1During the 2008 financial crisis, the S&P 500 entered a bear market, dropping over 50% from its peak.
• 2The technology sector often experiences bear markets, as seen in the early 2000s when tech stocks plummeted after the dot-com bubble burst.
• 3Investors might increase their holdings in bonds or cash during a bear market to mitigate potential losses.
• 4Bear markets can trigger a sell-off in global markets, affecting stocks, commodities, and even real estate investments.

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