A bear market is a term used in finance to describe a prolonged period of declining stock prices, typically in a specific financial market or across the broader economy. In a bear market, investor sentiment is pessimistic, and there is a widespread belief that the value of assets, especially stocks, will continue to decrease. Bear markets are often characterized by a decline of 20% or more from recent highs, although there is no strict percentage that defines one.

Several factors can trigger a bear market:

1. Economic downturn: Economic recessions or slowdowns can lead to reduced corporate earnings and consumer spending, causing stock prices to fall.

2. High interest rates: Central banks may raise interest rates to combat inflation, which can lead to higher borrowing costs for businesses and consumers, dampening economic growth and stock market performance.

3. Geopolitical events: Events such as wars, political instability, or trade disputes can create uncertainty and negatively impact investor confidence.

4. Overvaluation: If stocks are perceived as overpriced, investors may start selling, leading to a downward spiral in prices.

Bear markets can be emotionally challenging for investors, as they often involve significant losses and prolonged periods of uncertainty. During such times, investors may adopt defensive strategies, such as moving their investments into less risky assets like bonds or cash, in an attempt to preserve capital.

It's important to note that bear markets are a natural part of the financial market cycle and are typically followed by bull markets, where stock prices rise. Investors should approach bear markets with a long-term perspective, diversify their portfolios, and consider their risk tolerance to navigate these challenging periods successfully.