A bear market is a market in which the prices of securities, such as stocks, are declining or are expected to decline. Bear markets are typically characterized by negative investor sentiment, increased selling pressure, and lower prices.
Bear markets can be caused by a variety of factors, including economic recession, high unemployment, rising interest rates, and market speculation. Bear markets can be difficult for investors, as they may see the value of their investments decline significantly.
However, bear markets can also present opportunities for investors to buy low and sell high if they believe that the market will eventually recover. It is important for investors to have a long-term perspective and to be prepared for the possibility of bear markets, as well as for the ups and downs of the market more generally.