A bear market is a financial market condition in which prices of securities, such as stocks, bonds, and commodities, are falling or expected to fall significantly. Typically, a bear market is characterized by widespread pessimism, investor uncertainty, and a decline in economic activity.
Bear markets are often associated with prolonged economic recessions, high unemployment rates, and decreasing corporate profits. Investors may also sell off their assets due to fears of further losses, which can exacerbate the downward trend.
Bear markets are the opposite of bull markets, which are characterized by rising stock prices, economic growth, and investor optimism. Understanding the difference between these two types of markets can help investors make informed decisions about their investments.