Bear market definition

A market where prices have been steadily declining over time, and have fallen by 20% or more from a previous market peak.

Home Investing glossary Bear market

What is a bear market?

A bear market means that prices have been steadily declining over time – and have fallen by 20% or more from a previous market peak. But, with a diversified portfolio, bear markets aren’t necessarily something to worry about.

 

How long do bear markets last?

There’s no hard-and-fast rule for how long a bear market will last. Put simply, markets decline when demand for stocks falls – which can happen for a number of reasons, including rising interest rates or rising unemployment. Typically, the market won’t recover until demand for stocks rises.

 

Bear vs bull market

The opposite of a bear market is a bull market, which is when the market is rising. They get their names from the way these two animals attack: a bear swipes down with its paws, while a bull swipes up with its horns.

Learn more about bull markets

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