Market Basics

Bull vs Bear Markets

You hear the terms bull market and bear market all the time. Let me break them down. A bull market is when stock prices are rising or expected to rise. Generally, it's defined as a 20 percent or more increase from recent lows. Bull markets are driven by economic growth, low unemployment, and investor confidence. A bear market is the opposite, a 20 percent or more decline from recent highs. Bear markets often come with economic slowdowns, rising unemployment, and fear. Here's an interesting stat: