Create a visual lesson
~2 minBull Market vs. Bear Market: What's the Difference?
Read the comparison below, or explore it visually. Create a visual lesson comparing bull market and bear market using available credits or plan allowance.
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.
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.