Lesson 4 of 5 · 3 min read
Bull & bear markets
What do those bulls and bears actually mean?
Bull market
A rising market with optimism. A 'bull' thrusts upward with its horns — prices rise sharply over a longer period (often +20%).
Bear market
A falling market with pessimism. A 'bear' swipes downward with its paws. Officially: a drop of 20% or more from the top.
Both are part of it
Bull and bear markets alternate. Those who panic-sell during a bear usually miss the recovery rally that follows.
Stock market halves in the financial crisis — and then multiplies eightfold
The S&P 500 lost over 50% between 2007 and 2009. Those who stayed put saw the market climb to new records in the decade that followed. Bear markets always end.
Remember this
- Bull market = sustained rise with optimism (often +20%).
- Bear market = a drop of 20% or more from the top, with pessimism.
- They always alternate — bear markets end without exception.
- Panic-selling in a bear usually means missing the recovery rally.
There is a quiz for this lesson
2 questions that check whether it stuck. They live in the app, because a quiz nobody grades teaches nothing.
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