What is a bear market and a bull market?

A bear market and a bull market are terms used to describe the overall direction of the stock market over a period of time.

A bull market is when the stock market is experiencing an upward trend, with prices generally rising and investor confidence high. This trend may be driven by a strong economy, positive news about companies, or other factors that indicate growth and profitability. During a bull market, investors tend to be optimistic and may be more willing to take on risk in their investments.

A bear market, on the other hand, is characterized by a downward trend in the stock market, with prices generally falling and investor confidence low. This trend may be driven by negative news about the economy or specific companies, or other factors that indicate a decline in profitability or growth. During a bear market, investors tend to be more cautious and may be more likely to seek out safer, less risky investments.

It's important to note that bear and bull markets are not mutually exclusive and can occur in different sectors or industries within the stock market. They are also not predictable or consistent, and can change quickly based on a variety of external factors.