Graphic Bull or bear market?

What these common expressions really mean

Bull market

  • Stocks are rising
  • The economy is expanding
  • Unemployment is falling or stable
  • Named for the way a bull drives its horns up

Bear market

  • Stocks are falling
  • The economy is contracting
  • Unemployment is rising
  • Named for the way a bear swipes its paws down

Whether stocks are in a bull market or bear market can give a quick approximation of how the market is performing and what investors’ economic expectations are.

Key Takeaways:

  • Investors may refer to the stock market as being in a “bull market” or “bear market.”
  • A bull market describes a period when stock prices are generally rising, while a bear market describes a time when stocks are generally falling.
  • Bull markets tend to correspond with economic growth, while bear markets tend to correspond with economic contractions.
  • Stocks may fall for a number of days (or even weeks) during a bull market or rise for days or weeks during a bear market. Whether a bull market has crossed into a bear market or vice versa generally depends on the magnitude of price movements.

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