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Bull vs. Bear Markets

The two basic "moods" of the overall stock market — optimism or pessimism.

A "bull market" describes a period where stock prices are generally rising and investor confidence is high — often tied to a strong economy. A "bear market" is the opposite: prices are falling broadly (typically defined as a 20%+ drop from recent highs), often alongside economic uncertainty or recession fears.

Picture it

Bull marketBear marketRecent highDown 20% or more
A simplified sketch, not real data. Prices climbing over a long stretch is a bull market. A fall of 20% or more from the recent high is the usual definition of a bear market.

These terms describe the overall market mood, not any single stock. Markets naturally cycle between the two over time — neither lasts forever, though bull markets have historically tended to last longer than bear markets.