In the financial world, a bear market is a prolonged period of decline in the stock market. During a bear market, stock prices fall by 20% or more from their recent highs. Bear markets can be caused by a variety of factors, including economic recession, geopolitical uncertainty, and interest rate hikes.
While bear markets can be challenging for investors, they can also present opportunities to make money. By understanding the causes and dynamics of bear markets, investors can position themselves to profit from declining stock prices.