Bear market

Bear market

Any market in which prices exhibit a declining trend. For a prolonged period, usually falling by 20% or more.

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bear market

An extended period of general price declines in an individual security or other asset, such as silver or real estate; a group of securities; or the securities market as a whole. Nevertheless, even during widespread bear markets, it is possible to have bull markets in particular stocks or groups of stocks. For example, stocks of gold-related companies often move against major trends in the security markets. Compare bull market.

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Bear market. A bear market is sometimes described as a period of falling securities prices and sometimes, more specifically, as a market where prices have fallen 20% or more from the most recent high.

A bear market in stocks is triggered when investors sell off shares, generally because they anticipate worsening economic conditions and falling corporate profits.

A bear market in bonds is usually the result of rising interest rates, which prompts investors to sell off older bonds paying lower rates.