A trader, investor, or market participant who believes that the price of an asset or the broader market will decline over a sustained period. A bear typically holds a pessimistic outlook and may express this view by selling existing holdings, opening short positions, or purchasing put options. The term originates from the way a bear attacks by swiping its paws downward, symbolizing falling prices, and someone holding this view is described as having bearish sentiment.
Example
“The veteran hedge fund manager turned bear on equities, citing stretched valuations and slowing earnings growth as reasons to expect a prolonged downturn.”