Bear Market
Beginner Level
Global
Financial Markets
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Definition
A market condition where prices are falling or expected to fall, typically defined as a 20% or more decline from recent highs.
Detailed Explanation
Bear markets often accompany economic downturns and are characterized by pessimism and selling pressure. The term comes from the downward swipe of a bear's paw. Investors may move to defensive assets.
Example
During the 2008 financial crisis, global markets entered a bear market with indices falling over 50%.
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