Bull Market vs. Bear Market? What You Need to Know

If you’ve been around for long enough, you can’t have failed to notice that the economy goes through booms and busts, and these are known as bull markets and bear markets for our investments.

Let’s take a look at what bear and bull markets are, what to expect from them, and how to react to them for maximum profit.

What Is a Bull Market?

During a bull market, the economy is doing great, stock prices are high, and unemployment is low. What more could you ask for?

It’s a time when investors see their investments skyrocket in value and can find the most opportunities for profit-making since everything is booming.

Unfortunately, the good times can’t last forever. On average, bull markets last between four to 11 years, although they can be over as quickly as a few months.

What Is a Bear Market?

As they say, what goes up must come down — and that downward movement is encapsulated in bear markets.

Bull and bear markets can refer to any kinds of investments, assets, or commodities — so at any given moment, there may be a bull market for cryptocurrencies yet a bear market for stocks.

Understanding Bull Markets and Bear Market

Swipe Up

for more finance, business, and real estate advice