Bull Market vs. Bear Market: What's the Difference?
A bull market and a bear market describe opposite market trends. A bull market is a sustained period of rising prices and optimism; a bear market is a sustained fall of 20% or more from recent highs, marked by pessimism.
See the difference, explained visually.
Watch a 2-minute animated lesson comparing bull market and bear market.
At a glance
| Bull Market | Bear Market | |
|---|---|---|
| Direction | Prices rising | Prices falling |
| Mood | Optimism, confidence | Pessimism, fear |
| Rule of thumb | Sustained gains | A drop of 20%+ from highs |
| Investor behavior | More buying | More selling and caution |
| Memory aid | A bull thrusts its horns up | A bear swipes its paws down |
Which should you use?
Bull Market
'Bull market' describes an extended upswing — rising prices and confidence, often during economic growth.
Bear Market
'Bear market' describes an extended downturn — falling prices and caution, often during or before a recession.
Frequently asked questions
- Why are they called 'bull' and 'bear' markets?
- A popular explanation: a bull attacks by thrusting its horns upward (rising prices), while a bear swipes its paws downward (falling prices).
- How big a drop makes a bear market?
- A common rule of thumb is a decline of 20% or more from recent highs, sustained over time — smaller dips are usually called 'corrections'.
- How long do they last?
- It varies widely. Bull markets have historically tended to last longer than bear markets, but both can range from months to years — and past patterns don't predict the future.