What is a bear market and how does it affect investors?

A bear market is a period in which the prices of securities or assets, such as stocks, fall by 20% or more from their recent highs. This market downturn can be driven by a variety of factors, including economic recession, poor corporate earnings, or a loss of investor confidence. For investors, a bear market can result in significant losses, particularly for those holding stocks or bonds in affected sectors. However, some investors may see this as an opportunity to buy assets at lower prices, anticipating a market recovery. Bear markets can also lead to increased volatility and uncertainty in the financial markets.