A bear market is a market condition in which the prices of securities, such as stocks, bonds, or commodities, are falling. It is typically characterized by a general decline in market prices, pessimism among investors, and negative investor sentiment.
A bear market is typically defined as a decline of 20% or more from the previous peak in market prices. Bear markets can be caused by a number of factors, such as economic recession, rising interest rates, geopolitical uncertainty, or market bubbles.
Bear markets can be difficult for investors, as they can lead to significant losses in their investments. However, they can also present opportunities for investors who are willing to take a long-term view and who are able to capitalize on market downturns by buying undervalued assets. Many investors use bear markets as an opportunity to rebalance their portfolios and to diversify their investments.