What is Bear Market?
A bear market is a period in which asset prices fall 20% or more from recent highs, usually amid pessimism and weakening economic conditions.
Example
When a major index drops more than 20% from its peak, as many did in early 2020, analysts declare a bear market.
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Related terms
Bull Market
A bull market is a period in which asset prices are rising or are expected to rise, typically accompanied by investor optimism and strong economic conditions.
Recession
A recession is a significant, widespread decline in economic activity lasting more than a few months, typically visible in falling GDP, employment, and spending.