Market Decline

Market decline refers to a period in which the prices of securities, such as stocks, decrease in value over time. It is generally characterized by a drop of 10% or more in a stock index or market price over a sustained timeframe, often interpreted as a bear market. Market declines can result from various factors, including economic downturns, poor corporate earnings, geopolitical tensions, or shifts in investor sentiment. This phenomenon can affect overall investor confidence, leading to further selling pressure and potential long-term implications for economic growth. Investors often respond to market declines by reassessing their portfolios, and some may see it as an opportunity to buy undervalued assets.