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bear market
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A bear market is a prolonged period of falling stock prices. It is typically defined as a decline of at least 20% from the previous high. A bear market can occur in any asset, but it is most often associated with stocks.Bear markets are often preceded by a period of rising stock prices, which is known as a bull market. During a bull market, investors become optimistic about the future and are willing to pay higher prices for stocks. This optimism eventually fades, leading to a sell-off in the stock market and the beginning of a bear market.

There are many causes of bear markets, including economic recessions, inflationary concerns, and geopolitical events. Bear markets can be difficult to predict, but they usually last for several months or more.Investors who are aware of the risks associated with bear markets can take steps to protect their portfolios. For example, they may choose to invest in defensive assets such as cash or government bonds. They may also use hedging strategies to limit their losses if stock prices start to fall.
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