Bear Market

It is a prolonged period of declining prices in the financial markets. A bear market is the opposite of a bull market, where prices are rising over an extended period. Bear markets are typically characterized by high levels of uncertainty and pessimism among investors, leading to increased selling activity and decreased buying activity. This increased selling pressure often leads to a downward spiral, as falling prices further erode investor confidence, leading to even more selling.

Bear markets can be challenging for investors and traders, as they require a different mindset and set of strategies than bull markets. However, they can also present opportunities for those who are willing to take a contrarian approach and seek out undervalued assets or sectors that may rebound in the future.