All terms
Bear market (Bärenmarkt)
A longer period of falling prices, often defined as a drop of at least 20 % from the last high.
A bear market is the opposite of a bull market. The image: a bear swipes its paw downwards. As a rule of thumb, a market is in bear territory when it is at least 20 % below its last high.
Bear markets can last months or years. Common triggers are recessions, rising interest rates or crises.
Example: in 2022, after the start of the war in Ukraine and amid high inflation, the DAX fell more than 20 % below its high at times. Selling in such phases makes losses final. Continuing a savings plan means buying at lower prices.