Bear Market
A bear market is a period when investment prices fall significantly over an extended period and investor confidence is weak.
What it means
A bear market is a period when investment prices fall significantly over an extended period and investor confidence is weak. Bear markets are a normal part of investing and have historically been followed by recoveries, although nobody knows when those recoveries will happen.
During a recession, global share markets may fall sharply before gradually recovering over the following years.
Why it matters
Understanding bear markets can help you avoid making emotional decisions when markets fall.
Some of the best long-term investing opportunities have come after large market declines, but they're only obvious in hindsight.
Should I sell my investments during a bear market?
Not necessarily. Your decision should depend on your goals and time horizon rather than short-term market movements.