SmartRateToolsDefinition
A bear market is a broad decline in asset prices, often defined as a drop of 20% or morefrom recent highs.
What it usually looks like
- Falling stock prices over weeks or months
- Lower investor confidence and more caution
- Higher volatility and frequent sharp rebounds
How long do bear markets last?
There is no fixed timeline. Some are short and steep, while others are prolonged. Historically, markets have eventually recovered, but timing is unpredictable.
Practical takeaway
Bear markets are when long-term plans and diversification matter most. Investors who stay consistent with disciplined contributions can buy at lower prices, but risk tolerance should guide decisions.