Bear market
Also called: bearish
A bear market is a long period of falling prices, usually a drop of 20% or more from a recent high. Being bearish means expecting prices to fall.
A smaller drop of 10% to 20% is called a correction.
Related terms
- Bull market: A bull market is a long period of rising prices, often defined as a 20% rise from a recent low.
- Short selling: Short selling is borrowing shares, selling them, and buying them back later, to profit if the price falls.
- Market cycle: The market cycle is the repeating pattern of expansion, peak, contraction and recovery in prices and in the wider economy.
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