What is the difference between a bull and a bear?

Spectators would bet on the outcome. Thus you have ”bulls” versus “bears”. In this case, bulls represent a rising market, because when bulls attack, they thrust their horns upwards, whereas when bears attack, they claw downwards. A related theory is that the term “bear” originated with the market for bearskins.

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

However, bull markets run for much longer than bear markets, and their gains far outweigh the losses endured during bear markets. The average bull market lasts for a full nine years, generating an average gain of 480 percent, according to First Trust. Bear markets, on the other hand, run just 1.4 years, triggering average losses of 41 percent.

Where do bulls and bears come from?

Bulls are optimistic about asset prices, while bears are pessimistic. But where do the terms come from? No one really knows for sure. But one theory is that they come from a rather grisly bloodsport – popular in both Elizabethan England and gold rush era California – in which a bull would be pitted against a bear.

How long does a bear market last?

The most recent bear market, which started in March 2020, was exceptionally short, ending in August when stocks closed at record highs. The previous bear market, the Great Recession, on the other hand, didn’t see a recovery for about four years. It’s important to note, though, that even during bear markets, the stock market can see big gains.