A bear market refers to a period in financial markets when the prices of securities fall by 20% or more from recent highs. This decline typically occurs over at least two months and is often accompanied by widespread pessimism and negative investor sentiment. Bear markets can affect various asset classes, including stocks, bonds, and commodities. These market downturns can be triggered by various factors, such as economic recessions, rising interest rates, or geopolitical tensions. During a bear market, investors may become more risk-averse, leading to decreased spending and investment, which can further exacerbate the economic slowdown.