what is bull market and bear market

A bull market is a period when stock prices are rising and investors feel optimistic. A bear market is the opposite: prices are falling, and investors are usually more cautious or fearful.

Quick Scoop

• Bull market: A broad market index rises, often by about 20% or more over time.

• Bear market: A broad market index falls by about 20% or more from a recent high.

• Mood matters: Bull markets usually come with confidence and more buying, while bear markets often come with worry and more selling.

Simple example

If the S&P 500 keeps climbing for months and investors expect more gains, that’s a bull market. If it drops sharply and stays weak for a sustained period, that’s a bear market.

Why it matters

These terms help people describe the overall direction of the market, not just one stock. They also help investors understand whether the market is being driven more by optimism or caution.

TL;DR: Bull market = rising prices and optimism. Bear market = falling prices and caution.