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  3. Bear market

Market basics

What is Bear market?

Hinglish mein padhein: Bear market kya hota hai?

A bear market is a sustained fall in prices, commonly defined as a decline of 20% or more from a recent peak.

Bear markets come with pessimism, falling earnings expectations and often an economic slowdown. They tend to be shorter but sharper than bull markets.

Being "bearish" means expecting prices to fall.

Related terms

  • Bull marketA bull market is a long period of rising prices and optimism, often defined as a rise of 20% or more from a recent low.
  • Market correctionA correction is a fall of about 10% to 20% from a recent high — sharper than a normal dip but smaller than a bear market.
  • VolatilityVolatility measures how much and how quickly a price moves. Higher volatility means bigger swings in both directions.
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