What is a bull vs. bear market?

A bull market and a bear market describe the two main trends in financial markets, which are often dictated by economic swings, geopolitical events, and other factors that can impact overall market sentiment.

A bull market is characterized by rising asset prices and overall optimism among investors. It’s a period of sustained upward trends when investors are feeling confident overall, leading to increased market participation and buying activity.

A bear market, on the other hand, is marked by falling asset prices and overall pessimism among investors. It’s a period of sustained declines in the markets, with cautious or negative investor sentiment. During a bear market, there tends to be less market activity and a bigger focus on capital preservation.

Investors use the terms bull and bear market to talk about market conditions and make more informed investment decisions.