What is a bull and bear market?

Simply put, a bull market is occurring is when prices are going up, while a bear market is occurring when prices are going down. Small markets, large markets, and entire economies can be defined as either a bull or bear market. Bull markets are sustained by positive feedback loops, i.e. stocks increasing in value triggers people to buy more stocks, which further increases the value of the stocks, etc. Bear markets are sustained by negative feedback loops, i.e. stocks decreasing in value triggers people to sell their stocks, which further decreases the value of the stocks, etc.

 

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