Srading.com

Menu
  • Home
  • Markets
    • Forex
    • Stock
  • Fundamental Analysis
    • Economics
    • Money & Banking
  • Technical Analysis
    • Drawing Tools
    • Chart Patterns
  • Tools
    • Online Charts
    • Economic Calendar
    • Interest Rate Today (Live Widget)
    • Forex Market Hours
    • Currency Indexes Chart
    • National Holiday Calendar
    • CoT Chart
    • Quotes
Home
Stock
What Are Bull and Bear Markets? (Plus Examples)
Stock

What Are Bull and Bear Markets? (Plus Examples)

July 2, 2022 Zafari

You hear the bull and bear markets always from news agencies and investors. By these words, they provide their opinions about the state of the market.

A bull market means that stock indexes are going up, and in a bear market they are going down.

After a bull market, there is a bear market. In a free market, it is part of the economic cycle.

Both bull and bear markets can last from months to years. However, on average, bull markets last more than bear markets.

bull and bear markets

This article elaborates on what is a bull market, what is a bear market, how they start and end, and generally, how long bull and bear markets last.

You Will Continue Reading

Toggle
  • What Is a Bull Market?
    • How Does a Bull Start and End?
  • What is a Bear Market?
    • How Does a Bear Market Start and End?
  • Examples of Bull and Bear Markets
  • Bottom Line

What Is a Bull Market?

A bull market is a state of the economy in which the stock market is in an uptrend.

The most common definition of a bull market is a stock market situation in which indexes are up 20% or more from the previous bottom.

Bull market

An investor who says he is bullish on a stock believes the underlying stock will go upward.
An investor can bullish or bearish on a stock or the entire economy.

The start of a bull market is the time this trend starts. And, its end is the time this trend ends.

The name of the bull market is inspired by how bulls fight. In a fight, two bulls run to each other hit and push the opponent until the stronger makes the weaker one surrender.

How Does a Bull Start and End?

The bull market starts with smart investor purchases. They find the time that the stock market is undervalued and start buying. Other smart traders confirm it, followed by regular investors or traders. These followers accelerate the speed of rising.

Intelligent investors find opportunities by analyzing the market technically, fundamentally, behaviorally, etc. They try to find out the root cause of market movement and confirm their findings in the market through extensive research and hard work.

Please be aware if you think of specific investors as smart. They are likely smart, but no one always predicts the exact reversal point or area.

Read more: What is a Trend in Finance? How to Determine a Trend?

What is a Bear Market?

A bear market is an economic state in which indexes go downward. It is confirmed in the financial market, where indexes have fallen below 20%.

bear market

A bear market is not the same as a recession. We can be in a bear market but not a recession. However, when there is a recession the bear market is a must.

The name of the bear market is inspired by how bears fight. In a fight, bears first stand up by their hind feet and try to knock down the opponent. In the stock, the falling of an index resembles the way that a bear knock down a competitor.

Read more: What is an Economic Recession in Simple Terms?

How Does a Bear Market Start and End?

The bear market also starts with smart investors’ analysis.

Smart investors find out that the market is overvalued or a recession is coming due to fundamental and technical founded reasons.

These investors sell their assets for profit. News of future bear market spreads across the market. Some other investors sell as well, and the downtrend continues, pushing the market down even further.

Read more: Stock Market Bubble: Stages, Signs & Examples

Examples of Bull and Bear Markets

In the following, I have brought to you a few examples of bear and bull markets. You will see that a bear market can last a short and long period.

The bear market that started in Oct 2007 was caused by the housing market in the USA and continued until late November 2008

Source: Tradingview

After this bear market, a small bull market started which lasted one and half months.

Source: Tradingview

And another bear market began and continued for two months.

Source: Tradingview

The longest bull market in the history of the USA lasted from 2009 to 2020, which hit the covid-19 pandemic. In the bull market from March 2009 to Feb of 2020, the SP 500 spectacularly rose 400%.

Bull market from 2009 to 2020
Source: Tradingview

Bottom Line

Again, worth repeating that no one exactly knows the exact point of reversal. Smart investors also make mistakes and sometimes get out of the market early. So, you should not expect someone to make always the best decisions.

Share
Tweet
Linkedin
Pinterest
Reddit
Email
Prev Article
Next Article
Tags:Forex Technical Analysis Trading

Related Articles

What Is an IPO? A Definitive Guide

What Is an IPO? A Definitive Guide

Stock Market Bubble: Stages, Signs & Examples

Stock Market Bubble: Stages, Signs & Examples

What Is the Stock Market? A Definitive Guide

What Is the Stock Market? A Definitive Guide

What Is a SPAC? A Short Route to Go Public

What Is a SPAC? A Short Route to Go Public

Sector Rotation: A Complete Guide For Beginners

Sector Rotation: A Complete Guide For Beginners

All Types of Investors Explained

All Types of Investors Explained

About The Author

Zafari

Zafari is a professional trader and has been in the financial market since 2014. He has a bachelor of public economics and an MBA. For some reason, he does not show his face. And he loves you all!

Leave a Reply Cancel Reply

Recent Posts

  • Capitalism: The Definitive Guide
    What Is Capitalism? Capitalism is an economic and political system …
  • Trading Checklist: What It Is, Info-graphic, and …
    What Is a Trading Checklist? A trading checklist is a …
  • Private Equity (PE): What It Is, How …
    Private equity is an investment in a private company. The …
  • Government Spending: The Definitive Guide
    Government spending refers to the government’s total expense and the …
  • Three Basic Economic Questions Explained in Simple …
    Three basic economic questions are: Who answers these questions? The …

Popular Posts

    Srading.com

    QUICK LINKS

    • About
    • Cookies Policy
    • Terms & Conditions
    • Disclaimer
    • Privacy Policy
    • Contact Us

    LATEST POSTS

    • Capitalism: The Definitive Guide
    • Trading Checklist: What It Is, Info-graphic, and PDF
    • Private Equity (PE): What It Is, How It Works, & How to Get In
    • Government Spending: The Definitive Guide
    • Three Basic Economic Questions Explained in Simple Words

    FOLLOW US ON SOCIAL MEDIA

    • Facebook
    • Twitter
    • LinkedIn
    • Instagram
    • Pinterest
    • Telegram
    • Reddit
    • YouTube

    Trading financial assets are risky. Everything you read on this website is just for educational purposes or personal opinions only. Read our DISCLAIMER!

    Copyright © 2025 Srading.com
    Call on WhatsApp

    Ad Blocker Detected

    Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

    Refresh
    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By continuing this website or clicking “Accept”, you consent to the use of ALL the cookies.
    Do not sell my personal information.
    Cookie SettingsAccept
    Cookies Policy
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT