The glossary

Bear market

A bear market is a sustained period — typically months or years — during which asset prices fall broadly, pessimism dominates investor sentiment, and economic conditions are deteriorating. The term reportedly comes from the way a bear attacks: swiping its paw downward. A market is generally considered “in a bear phase” after a decline of 20% or more from a recent peak. Bear markets are uncomfortable but historically inevitable parts of long-term investing. They reward diversified investors who remain invested and continue contributing — the worst returns in market history are usually followed by some of the best. Discretionary mandates like Alpian’s investment portfolios are designed to remain robust through both phases of the cycle.

Last verified: May 2026