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.

What do bulls and bears think about investing?

Bulls think prices are going higher, while bears think they’re headed lower. Try not to get caught up in trying to anticipate when a bull or bear market might begin or end. Think of your investments as part of your overall financial plan and do your best to take a long-term view.

Are stock prices rising or declining in a bear market?

Stock prices are rising in a bull market and declining in a bear market. The stock market under bullish conditions is consistently gaining value, even with some brief market corrections. The stock market under bearish conditions is losing value or holding steady at depressed prices.

How does a bull market start?

A bull market begins when investors feel that prices will start, then continue to rise; they tend to buy and hold stocks in the hope that they are right. The investors’ belief about stock prices influences the prices themselves in a self-fulfilling prophecy – where investors create market circumstances.