What is a stock market bull or bear?
Published: March 18th, 2022
Estimated reading time: 1 minutes.
Bull and Bear are two of the most common financial terms in the world. They are used to describe how well the stock market is doing. The term bull market can be seen as optimistic, while a bear market is seen as pessimistic.
When stock prices are going up, it is considered a bull market. The beginning of a bull market is typically marked when the Dow Jones Industrial Average (DJIA) has risen more than 20% over the prior six months.
A bear market, on the other hand, describes a market where stock prices are going down. A bear market usually lasts for three to four months, beginning when the DJIA falls more than 20% from its peak over the prior 12 months.
You'll often see investors described as either bulls or bears. Similar to the description above, a bull is someone optimistic about a particular stock, company, or overall market. And a bear is someone who believes the stock or market is not good and will not do well, at least in the short term.
Learn more about investing in the stock market here.