Markets & trading2 min read
Bear marketGerman: Bärenmarkt
A bear market is a prolonged period of substantially declining prices. A fall of at least 20% from a previous peak is a common rule of thumb.
In plain language
The term describes a market phase, not a precise forecast. Declines can arise from weaker profits, uncertainty or changing rates. Temporary rebounds do not rule out a bear market.
Let’s make it concrete
An index falls from 1,000 to 780 points. The 22% decline from its peak meets the common rule of thumb.
Simplified example for illustration.Worth understanding
The label tells you neither how long the decline will last nor when prices will reach their lowest point.
Read more from official sources
For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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