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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
When stock prices fall 20%+ and investors are cautious.
Why It Matters
Bear markets are scary but temporary. Every single bear market in U.S. history has been followed by a recovery to new highs. The 2020 COVID crash dropped 34% in weeks - but recovered in just 5 months. Those who panic-sell lock in their losses; those who stay invested ride the recovery.
Key Points
- Bear markets average 9-18 months - much shorter than bull markets
- Named for how bears attack - swiping their paws downward
- They're often buying opportunities - you're getting stocks 'on sale'
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Bulls and Bears Explained
Get a complete explanation with examples, key takeaways, and a quiz to test your knowledge.
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Common Questions
When stock prices fall 20%+ and investors are cautious. Bear markets are scary but temporary. Every single bear market in U.
Bear markets are scary but temporary. Every single bear market in U.S. history has been followed by a recovery to new highs. The 2020 COVID crash dropped 34% in weeks - but recovered in just 5 months. Those who panic-sell lock in their losses; those who stay invested ride the recovery.
Bear markets average 9-18 months - much shorter than bull markets
Named for how bears attack - swiping their paws downward
They're often buying opportunities - you're getting stocks 'on sale'