What is the difference between a bull market and a bear market?

It’s likely you’ve heard the term “bear market” and “bull market” being used as context to what’s happening in the stock market. In short, a bear market is when stock prices fall and a bull market is when prices go up. It’s easy to interpret the two terms as they are essentially opposites of one another.

Should you run with bulls or Bears in the stock market?

Both bulls and bears are intimidating animals, but in terms of the stock market, you'll generally have luck running with the bulls and keeping your distance from the bears. As of June 2, 2023, the S&P 500 market index nears bull market territory as it is now up more than 19.7% since its bear market low last October.

What does a bull market mean for investors?

With a bull market, stock prices steadily increase, and investors are optimistic and encouraged about the stock market’s future performance. Bull markets indicate that the economy is strong and unemployment rates are generally low, which can instill investors with even more confidence and provide people with more income to invest.

Are value stocks a good buy in a bull market?

Growth stocks in bull markets tend to perform well, while value stocks are usually better buys in bear markets. Value stocks are generally less popular in bull markets based on the perception that, when the economy is growing, "undervalued" stocks must be cheap for a reason.