Intermediate Macroeconomic Theory
A bear market is defined as a period in which the prices of securities are falling, typically by 20% or more from recent highs, causing a widespread sense of pessimism among investors. This decline often leads to reduced investor confidence, causing further selling and an overall slowdown in economic activity. In the context of investment decisions, a bear market can significantly affect both consumer spending and business investments as uncertainty looms over future economic conditions.
congrats on reading the definition of bear market. now let's actually learn it.