A bull market is typically characterized by rising prices, often exceeding a 20% increase from recent lows. Investor confidence and expectations of continued gains drive market sentiment, leading to increased buying activity. In contrast, a bear market features declining prices, generally falling 20% or more from recent highs, accompanied by widespread pessimism and reduced investor confidence. Traders often see bear markets as opportunities to short-sell, while bull markets encourage buying and holding strategies. Both market types reflect economic sentiment and can influence various asset classes, including stocks and commodities.
Market Education