What is a bull market vs bear market?

A bull market is a phase in financial markets where stock prices or asset values rise consistently over a prolonged period, often fueled by strong economic growth, high investor confidence, and increased demand for securities. In a bull market, optimism drives investment activity and businesses benefit from higher valuations. On the other hand, a bear market represents the opposite situation, where prices of stocks or other financial assets fall continuously, generally by 20 percent or more from recent highs. Bear markets are associated with weak economic conditions, reduced investor confidence, and declining corporate profits. Both bull and bear markets are natural cycles in financial markets, influenced by economic indicators, geopolitical events, and investor sentiment, shaping opportunities and risks for investors.