We’ve been hearing a lot about ‘bear’ and ‘bull’ markets a lot the past few years, but what does that even mean?
There are no official rules or guidelines as to what classifies a bull or a bear market, but occasionally it’s defined as an increase or decrease of 10% or more.
During a period of time in which the prices of stocks increase, it’s considered a ‘bull’ market.
When the prices of stocks decrease during a period of time, it’s considered a ‘bear’ market.
So why ‘Bear’ and ‘Bull’?
According to Investopedia:
The use of “bull” and “bear” to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air while a bear swipes its paws down. These actions are metaphors for the movement of a market. If the trend is up, it’s a bull market. If the trend is down, it’s a bear market.