📌 Definition:

A bear market happens when stock prices fall by 20% or more over a sustained period.

A bull market happens when stock prices rise consistently and investor confidence remains high.

These terms describe overall market direction and investor sentiment.

📈 Bull Market:

During a bull market:

• stock prices rise

• investor confidence increases

• businesses expand

• consumer spending grows

• optimism increases

Example: Many technology stocks surged during major growth periods for companies like Apple and NVIDIA.

📉 Bear Market:

During a bear market:

• stock prices fall

• investors sell aggressively

• fear increases

• businesses may slow hiring

• spending decreases

Example: During the COVID-19 stock market crash many markets dropped due to uncertainty.

⚠️ Why markets move between both:

• inflation concerns

• interest rate changes

• company earnings

• global conflicts

• investor psychology

💡 Why investors care:

These cycles affect:

• retirement funds

• mutual funds

• personal investments

• business confidence

✨ Key Takeaway:

Markets often move between greed and fear.

Understanding these cycles helps investors avoid emotional decisions.