What Is a Bear Market? (And How Do They Work?)
A bear market is when a market undergoes significant and prolonged price declines, typically over 20% in a given period. Bear markets are also characterized by overly negative market sentiment and pessimism.
In general, bear markets occur in stock markets about every 3-4 year and generally last about 289 days. That’s to say, bear markets aren’t uncommon, rather they’re a facet of regular market cycles – generally. There are occasions where bear markets are triggered by significant external factors that cause markets to plunge.
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