Chapter: 5 Investing in Stocks

Section: 5 Bull vs. Bear Market

An extended period of general price decline in the overall market is referred to as Bear Market. However, within a bear market it is possible that certain stocks can move in the opposite direction and appreciate in value. A bear market witnesses investors selling off shares because they anticipate worsening economic conditions and falling corporate profits or other negative factors.

Bull market is evident when overall stock market gains a positive momentum with rising prices. The market may experience bullish runs due to various reasons such as better than expected corporate earnings, positive economic outlook etc.