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Bear Market

A long, deep fall in prices.
In plain English

A long, deep fall in prices. For stock indexes, a drop of 20% or more from a recent high is the common rule of thumb.

A bear market is when the floor keeps giving way: rallies get sold, lows get lower and fear becomes the mood. In stocks, a 20% fall from the peak is the usual label, though that number is a convention, not a law.

In forex the phrase is looser, since every pair is one currency rising against another. A 'bear market' in EUR/USD is also a bull market in the dollar. Opposite: bull market.

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