InsiderFlow › Glossary › What is a bear market?
A bear market is a prolonged price decline of at least 20% from the highs: the phase that tests every investor.
The bear attacks swiping downward, hence the name. Bear markets are shorter but more violent than bull markets: they last 9–18 months on average, with typical losses of 30–50%. In 2008 the S&P 500 lost 57%.
History is unambiguous though: every bear market in American history has been followed by new highs. Losses become permanent only for those who sell at the lows — which is exactly what fear pushes people to do.
On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.
Historically every 5–7 years or so, but irregularly: predicting them consistently is impossible.
The boring, historically winning answer: stick to the plan, rebalance, and don't panic-sell.