Bear Market
A sustained decline of 20% or more in stock prices accompanied by widespread pessimism.
What is Bear Market?
A bear market is a financial market condition characterized by falling prices and widespread investor pessimism, typically defined as a decline of 20% or more from recent highs. Bear markets often coincide with economic recessions, rising unemployment, and declining corporate earnings. They can be triggered by economic shocks, rising interest rates, geopolitical events, or the bursting of speculative bubbles. Bear markets historically last an average of 9–18 months, though they can end swiftly when central banks or governments intervene decisively.
Example
The S&P 500 entered a bear market in March 2020, falling 34% in just 33 days as the COVID-19 pandemic triggered a global economic shutdown — the fastest bear market decline on record. The Federal Reserve's emergency rate cuts and fiscal stimulus helped reverse the decline within months.
Source: Investopedia — Bear Market