A bear market is marked by falling asset prices and pessimism among investors. It is frequently linked to a deteriorating economy, growing unemployment, and unfavorable attitudes. Investors sell their assets during a bad market to protect themselves from future losses due to fear and uncertainty. As selling pressure persists, prices continue to decline, escalating the unfavorable mood.
Investors may employ defensive methods like selling or shorting assets in bear markets to protect their wealth. Bear markets can be difficult for investors.