Bear Market

Markets are generally considered by most to be a bear market when stock prices fall 20% or more from recent highs, typically across major indices like the S&P 500. Bear markets are often driven by economic downturns, high inflation, rising interest rates, or global crises. Investors may turn to defensive assets like bonds, gold, or dividend stocks to weather the decline. While bear markets can be painful, they also present buying opportunities for long-term investors when stocks become undervalued.