Plain-English definitions, reviewed by an independent investor
Bull Market vs Bear Market
A bull market trends up and feeds optimism; a bear market falls 20% or more from recent highs and saps confidence.
A bull market trends up and feeds optimism; a bear market falls 20% or more from recent highs and saps confidence.
(Defined by direction, not a formula: bear = −20% from peak)
Why it matters
Knowing the regime helps set expectations for risk and patience.
Common confusion
Start and end dates are only clear in hindsight; calling tops or bottoms is guesswork.
Frequently Asked Questions
How much is a bear market?
A broad drop of 20% or more from recent highs is the common rule of thumb.
Can you profit in a bear market?
Some hedge or short, but most simply wait it out or keep buying calmly.