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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