Bull Market vs Bear Market – Simple Explanation for Beginners
If you follow stock market news, you often hear two terms: Bull Market Bear Market But what do they actually mean? Let’s understand this in simple language. What Is a Bull Market? A bull market is a period when stock prices are rising consistently. It usually happens when: Economic growth is strong Corporate profits are increasing Investor confidence is high Liquidity is easily available In a bull market: Indices make higher highs Corrections are small Retail participation increases People feel optimistic. What Is a Bear Market? A bear market is when stock prices fall significantly over a period of time. It usually happens when: Economic growth slows Inflation rises sharply Interest rates increase Global crises appear In a bear market: Indices make lower lows Fear dominates Investors become cautious Sentiment turns negative. Why Are They Called Bull and Bear? The names come from how the animals attack: A bull pushe...