What is a Bear or Bull Market?
A bear market is a prolonged period of falling stock prices, usually marked by a drop of 20% or more. The opposite is a bull market, in which prices are moving upwards.
Are we in a bull or bear market?
markets are relative As the market changes every second, rather than absolute, so whether we are in a bull or bear market will depend on the time frame referenced.
Investment strategies rely on holding periods for investments, meaning that day traders will try to profit from a bull market that can last up to an hour, while investors hold positions through bull markets that last up to a decade. can last longer.
Is it Better to Buy in a Bull or Bear Market?
Bull markets tend to rise whenever an economy is strong and stable, which creates a more reliable market, but usually comes with higher stock prices.
Bear markets happen during a falling economy. Stock prices are low, but investing in them is a bit more risky as prices can fall and be volatile. This makes them a riskier investment, but more likely to yield higher returns.