Bull and Bear Market
Key Points
- An investor expecting a rise is therefore called a bull and one expecting a fall a bear.
- Bull markets tend to bring rising volume and optimistic expectations, bear markets falling risk appetite and a shift towards less volatile assets.
- real-time labels change often and become clear only in hindsight.
How It Works
there is no official definition. A common rule calls a fall of about 20% from the latest peak a bear market and a rise of about 20% from the latest trough a bull market. Smaller pullbacks (about 10%) are usually called corrections.
Interpretation
The concept is used for stocks, indices, commodities and cryptocurrencies.
Bull markets tend to bring rising volume and optimistic expectations, bear markets falling risk appetite and a shift towards less volatile assets. Whether a period was a bull or bear market is often only settled after the peak or trough has formed.
Pitfalls
real-time labels change often and become clear only in hindsight. In high-inflation periods a TL-based index can rise in nominal terms while falling in dollar or inflation-adjusted terms; compare using real returns.
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Frequently Asked Questions
What is Bull and bear market?
A bull market is a long, broad rise in prices driven by optimism; a bear market is a long, broad fall in prices driven by pessimism.
How does Bull and bear market work?
there is no official definition. A common rule calls a fall of about 20% from the latest peak a bear market and a rise of about 20% from the latest trough a bull market. Smaller pullbacks (about 10%) are usually called corrections.
Prepared by: Yatırımcı.AI Research TeamLast reviewed: Method: MethodologyEditorial policy