What is a Bear market?

You may have heard of bear and bull markets; both referring to economic conditions within a market. Think about how a bear attacks, pulling you down with its claws. 

A bear market or bearish market describes a condition within a financial market where the prices are decreasing or are expected to lower. The term “bear market" is most often used to refer to a financial market but refers to any asset that is tradable such as bonds, real estate, commodities, and currencies. Bear markets indicate uncertainty, investor doubt, and fear that poor results will continue for an extended period of time. 

There are two ways to approach a bear market, either holding in hopes of prices rising in the future or buying more to profit off once the bear market ends. Alternatively, you can also sell your assets, but most would not recommend selling at a low.

Ready to get started?

Get started with a financial platform that support you along the way. Trade on the go, invest &earn build your wealth while you learn. Join our 80K+ users in building a better financial future with Tap.

Home illustration