Bull and Bear Markets

Extracted Attributes

• Market Timing

  Inherently a game of educated guessing, as future trends are only determined in hindsight.

• Origin of Terms

  Investors started using these terms in the 1700s, with 'bull' associated with thrusting horns upward.

• Bear Market Definition

  A market in decline, characterized by lower lows and lower highs, investor pessimism, and receding economic conditions. Typically defined as a 20% or more decline in a broad market index over at least two months.

• Bull Market Definition

  A market on the rise, characterized by higher highs and higher lows, investor optimism, and favorable economic conditions. Typically defined as a 20% or more gain in a broad market index over at least two months.

• Market Trend Classifications

  Secular (long time-frames), Primary (medium time-frames), Secondary (short time-frames)

• Cathie Wood's Bitcoin Bull Case

  Price target of $1.5 million per Bitcoin

• Cathie Wood's Inflation Prediction

  0% or lower

• Cathie Wood's GDP Growth Prediction

  Over 7% (real GDP growth)

• Number of Bear Markets (S&P 500 since 1942)

  15

• Number of Bull Markets (S&P 500 since 1942)

  16

• Average Bear Market Duration (S&P 500 since 1942)

  11.1 months

• Average Bull Market Duration (S&P 500 since 1942)

  4.2 years

• Average Bear Market Cumulative Loss (S&P 500 since 1942)

  -31.7%

• Average Bull Market Cumulative Return (S&P 500 since 1942)

  148.9%

Timeline

• Investors began using the terms 'bull' and 'bear' to describe market trends. (Source: web_search_results)

  1700s

• Start of the period used for S&P 500 bull and bear market statistics. (Source: web_search_results)

  1942-04-29

• End of the period used for S&P 500 bull and bear market statistics. (Source: web_search_results)

  2024-03-28

Market trend

A market trend is a perceived tendency of the financial markets to move in a particular direction over time. Analysts classify these trends as secular for long time-frames, primary for medium time-frames, and secondary for short time-frames. Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time. A future market trend can only be determined in hindsight, since at any time prices in the future are not known. This fact makes market timing inherently a game of educated guessing rather than a certainty. Past trends are identified by drawing lines, known as trendlines, that connect price action making higher highs and higher lows for an uptrend, or lower lows and lower highs for a downtrend.

Web Search Results

• Bull vs. Bear Markets: What's The Difference? - Investopedia

  A bull market is a market that is on the rise and where the economy is sound. A bear market exists in an economy that is receding, where most stocks are declining in value. Although some investors can be “bearish,” the majority of investors are typically “bullish.” The stock market, as a whole, has tended to post positive returns over long time horizons. A bear market can be more dangerous to invest in, as many equities lose value and prices become volatile. [...] ## Bull Market A bull market is a market that is on the rise and where the conditions of the economy are generally favorable. A bear market exists in an economy that is receding and where most stocks are declining in value. Because investors’ attitudes greatly influence the financial markets, these terms also denote how investors feel about the market and the ensuing economic trends. [...] Bull markets tend to be longer than bear markets, although the duration can vary. Using the S&P 500 as a benchmark, since 1942, the average bull market lasted 4.2 years while the average bear market lasted 11.1 months. The average cumulative return of the bull markets was 148.9% and the average cumulative loss of the bear markets was -31.7%. Since 1942, there have been a total of 16 bull markets and 15 bear markets. The period assessed is from April 29, 1942, to March 28, 2024.

• Bull vs. Bear market: The basics explained - Scotiabank Global Site

  A bull market is when stock prices rise 20% or more from recent lows and stay elevated for at least two months — often driven by optimism and economic growth. A bear market occurs when stock prices decline by 20% or more over a sustained period of time — typically, at least two months — and is often tied to rising fear, pessimism, recession, or market shocks. Timing the market rarely works — even the pros might get it wrong so it's wise to stay invested through market ups and downs. [...] A bull market occurs when stock prices rise, and investor optimism is high. It’s typically defined as a 20% or more gain in a broad market index over at least two months.1 A bear market occurs when stock prices fall and investor pessimism dominates. This usually means prices have dropped 20% or more and stayed low for at least two months.2 ### Quick comparison of Bull & Bear markets [...] For long-term investors (10+ years), bear markets can be a gift — an opportunity to buy quality investments at a discount. Bull markets, on the other hand, are often better suited for retirees or those drawing income, offering more stability and fewer surprises. The key is knowing your timeline and staying consistent through both cycles. #####

• Bull vs. bear markets: What they are and how to invest during them

  While bull markets are fueled by optimism, bear markets — which occur when stock prices fall 20% or more for a sustained period of time — are just the opposite. Bull markets are generally powered by economic strength, whereas bear markets often occur in periods of economic slowdown and higher unemployment. Instead of wanting to buy into the market, investors want to sell, often fleeing for the safety of cash or fixed-income securities. [...] A bull market occurs when securities are on the rise while a bear market happens when securities fall for a sustained period of time. When you understand the differences between bull and bear markets, you can anticipate how they may impact your investment decisions. Working with a financial advisor to develop a plan and a diversified portfolio can help you manage market risk and avoid making emotional investment decisions. [...] The terms "bull" and "bear" markets come from imagining actual bulls and bears. Investors started using these terms in the 1700s. There are a few theories for how these terms came about. A charging bull gives the image of confidence. If a bull attacks, it also thrusts its horns upward, matching the rising trendline of a growing financial market.

• Bull vs. Bear Market: What's The Difference And How To Invest

  “Bear” and “bull” are two terms used to describe different parts of the market cycle, and they can tell investors a lot about what’s going on in the economy. A bear market is a prolonged decline in stock prices. A bull market is a prolonged rise in prices. [...] A bull market is the opposite of a bear market and occurs when asset prices rise significantly over a long period of time, commonly defined as a 20% or more increase from their most recent low. A bull market can also refer to a price spike in a specific market. [...] Bull markets typically happen alongside a growing or strong economy, a solid gross domestic product (GDP), rising corporate profits that lift stock prices, and lower unemployment. In the same way a bear market can shake investor confidence, a bull market can boost investor confidence, thus driving returns higher too.

• Bear Market vs. Bull Market: What Investors Should Know

  Falling stock prices, negative investor sentiment, and economic slowdown mark a bear market. A bull market happens when stock prices rise, and investors feel confident about the economy. Bull markets typically last three years, with an average gain of 100%, while bear market downturns slightly exceed this duration, causing an average loss of 20%. Investors usually buy more stocks in bull markets but shift to safer assets, such as bonds or cash, during bear markets. [...] A bull market is generally better for investors because stock prices are rising, and companies tend to grow. In contrast, a bear market condition often comes with falling prices, increased volatility, and a higher risk of loss of principal due to market turmoil. ### Should I wait for a bear market to invest?