There’s no official definition of a bear market, but stock market investors and commentators typically say that it is when stock prices are down by at least 20% from recent highs.
Investors can use various strategies in bear markets or markets where stock prices are trending down; the right approach depends on their risk tolerance, investment horizon, and goals.
Covid battered the stock market, and inflation concerns have dampened hopes for a quick recovery from lockdowns.
Increasing geopolitical tensions and macroeconomic risks also drive investors to seek out stocks with bear market potential, and their primary objective is to protect themselves from high inflation and volatility.