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

A bull market refers to a period when stock prices are rising or are expected to rise, often driven by strong economic growth, investor optimism, and increased buying activity. In contrast, a bear market is characterized by declining stock prices, usually by 20% or more from recent highs, often caused by economic downturns, investor pessimism, and widespread selling. The distinction between these two market conditions significantly impacts investment strategies.