Financecalendar_todayLast updated: Apr 2026

What is Bear Market?

/ˈbeər ˌmɑːkɪt/

A bear market is a period when asset prices fall 20% or more from recent highs, driven by widespread pessimism and selling. It is the opposite of a bull market.
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Everyday Example

Imagine you bought shares for £100 each. If those shares drop to £80 or less and keep falling, the market has entered bear territory.

publicReal-World Application

The 2008 financial crisis triggered one of the worst bear markets in history, with the S&P 500 dropping over 50% from peak to trough.
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Did you know?

The term "bear" comes from the way a bear attacks — swiping its paws downward, symbolising falling prices.

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Key Insight

Bear markets are normal and temporary. Historically every bear market has been followed by a bull market that exceeded the previous high.

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