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What is a Bear Market in Stock and Shares?

A Bear market is when Stock Markets decline in value over a sustained period.

You often hear people talk about a Bull Market or a Bear Market, and these are similar but opposite terms. A Bear Market is when Sock Market prices decline by around 20% or more over a sustained period.

This can happen when there are problems with an economy, perhaps during a recession. The Global Financial Crisis of the late 2000s or the .com bubble bursting in the early 2000s are examples of this.

But why is it called a Bear Market? Well when a bear attacks you it swipes downwards with it paws. So the bear attacking downwards reflects the Stock Market heading downwards. This is of course the opposite of a Bull Market, where a bull attacks upwards with its horns!


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