Bear market

A bear market – often referred to as a «baisse» in Switzerland – is a phase on the stock market in which prices fall over a longer period of time and there is generally a strong sense of pessimism. This is reflected in a price decline of at least 20 percent compared to the most recent high. It is the opposite of a bull market. The phenomenon is symbolized by a bear whose paw strikes downwards. In contrast, a bull market points upwards.

However, minor setbacks on the stock market do not automatically constitute a bear market. Minor downward swings are referred to as a «dip» or, if the setback exceeds 10%, a «correction». Bear markets are part of a stock market cycle and can be seen as an opportunity for investors to buy at a lower price.