Bear market (Bärenmarkt)
A longer period of falling prices, often defined as a drop of at least 20 % from the last high.
In short
As of 5 October 2026A bear market is a longer period of falling prices, usually defined as a drop of at least 20 percent from the last high. The image: a bear swipes its paw downwards. In 2022, after the war in Ukraine began and amid high inflation, the DAX at times fell more than 20 percent below its high. Crises are common triggers.
A bear market is the opposite of a bull market. The image: a bear swipes its paw downwards. As a rule of thumb, a market is in bear territory when it is at least 20 % below its last high.
Bear markets can last months or years. Common triggers are recessions, rising interest rates or crises.
Example: in 2022, after the start of the war in Ukraine and amid high inflation, the DAX fell more than 20 % below its high at times. Selling in such phases makes losses final. Continuing a savings plan means buying at lower prices.
As of 5 October 2026 · Educational content, not investment or tax advice.