Markets
Bear Market
A period in which a broad market index falls 20% or more from a recent high, often accompanied by widespread pessimism.
Example
The S&P 500's roughly 34% drop from its February 2020 high to its March 2020 low is a textbook bear market — it happened in about five weeks, unusually fast for the pattern.
Common Misconception
People often equate "bear market" with "recession," but the two don't always overlap — markets can fall 20%+ on rate-hike fears or valuation resets without the broader economy actually contracting.
Why It Matters
Recognizing you're in a bear market (rather than a normal pullback) matters for rebalancing decisions and for resisting the urge to sell after most of the decline has already happened.