Bull markets are where investor confidence is high meaning the market is moving upwards, whereas bear markets are where investor confidence is low and the market is moving downwards.
Bull and bear markets typically refer to the stock market performance as a whole in relation to economic cycles, which consist of four phases, expansion, peak, contraction and trough. The beginning of the bull market is the expansion phase and the beginning of a bear market is the contraction phase.
Generally, investors look for a 20% increase from a low point, as well as steady increases over at least a six-month period as signal of a bull market. Likewise, a bear market is a decline of 20% or more, as well as a steady period of decline for typically two or more months.
Please know, the value of investments can go up as well as down and you may receive back less than your original investment, meaning, when investing your capital is at risk.
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