Learn / Glossary / Bear market
GlossaryWhat is Bear market?
A bear market is a long stretch when stock prices keep falling and people feel worried.
The simple explanation
A bear market is usually defined as a drop of 20 percent or more from a recent high. They often happen alongside slowing economies. Historically they have ended and stock prices have recovered, though timing is never certain.
An example
An index falls 25 percent over six months as companies report weaker profits.
Why it matters
Bear markets test patience, and understanding them helps avoid panic decisions.
See it in your own stocks
Get a free daily brief that explains your stocks like you're 5, every trading day at 5 PM ET.
Start my free briefRelated terms
Educational information, not financial advice.