Bear Market
A bear market is a sustained decline in share prices of 20% or more from a recent peak.
Bear markets are typically associated with economic recessions, rising interest rates, earnings disappointments or financial crises — though sentiment alone can sustain a decline even when fundamentals are sound.
The average bear market in the US since 1929 has lasted around 9–10 months and produced a decline of roughly 35%, though outcomes vary enormously. Recoveries from bear markets have historically been full, given sufficient time.
For long-term investors, bear markets represent an opportunity to accumulate quality assets at lower prices — assuming you have the time horizon and stomach to hold through the uncertainty.
Further Reading
Peter Lynch on how everyday investors can spot winners before the professionals do.
Check Price →A structured logbook for tracking positions, theses and outcomes over time.
Check Price →JL Collins' plain-English guide to index investing and financial independence.
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Recommended Reading & Tools
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Peter Lynch on how everyday investors can spot winners before the professionals do.
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Check Price →Robert Kiyosaki's bestseller on assets, liabilities and financial literacy.
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