market-metrics

Bear Market

A bear market is a prolonged market decline, often defined as a drop of 20% or more from recent highs.

Explanation

Bear markets are normal parts of long-term investing. They can be stressful, but they are not unusual and often followed by recoveries.

Example

If a stock index falls from 5,000 to 4,000 and stays weak, it is commonly called a bear market.

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