Bear market

A bear market occurs when a market experiences prolonged price declines. The term is used to describe a condition in which securities prices fall 20% from their recent highs. Bear markets are often associated with declines in an overall market or index – such as the S&P 500 – but can also be connected with individual securities or an economic downturn such as a recession. Bear markets can be cyclical or longer-term. The former lasts for several weeks or a couple of months and the latter can last for several years or even decades.