Bull Market vs Bear Market: Simple Explanation with Examples

If you are new to investing, the stock market can feel confusing at first. But once you understand bull market and **bear market**, a lot of market news suddenly starts making sense.

In simple words, a bull market is when prices are generally going up, while a bear market is when prices are generally going down.

What Is a Bull Market?

A bull market is a period when stock prices, market indexes, or other assets keep rising over time. This usually happens when investors feel confident, the economy is improving, and companies are reporting strong results.

What Is a Bear Market?

A bear market is the opposite. It is a period when prices fall for a long time and investor confidence becomes weak. In many definitions, a bear market starts when a broad market index drops about 20% from a recent high.