A bull market is a market trend of rising prices. This typically encourages investors to buy more stocks because as share prices rise, the owner of those shares make money.

A bear market is a market trend of declining prices. This typically encourages investors to sell more to avoid losses because as share prices decline, the owners of those shares lose money.

Technically speaking, a bull and bear markets are measured by index funds, most commonly the S&P 500. A bear market is when the index price increases by 20% after a 20% (or more) decline and a bull market is when the index price decreases by 20% after a 20% increase (or more)

- Stock demand is larger than supply so prices increase

- Length of a Bull Market is approximately 9.8 Years

- Annual Return is a gain of about 17.5% per year

- Total Return is around 657% for each period

- Stock Supply is larger than demand so prices decrease

- Length of a Bear Market is approximately 1.9 Years

- Annual Return is a loss about -33.2% per year

- Total Return is a loss of around -53.9% for each perio

The most important thing to remember is that the market always recovers. So in a bear market when prices are falling, don't panic, and in a bull market when prices are rising, don't get too excited. It is actually best to buy when prices are low and sell when prices are high, because prices will most likely recover and return to normal levels.

Bear and bull markets are good concepts to know because they are predictable patterns in the overall performance of the stock market. Remembering that they occur relatively often, and that the market always "corrects" itself, or returns to normal, should help to prevent emotions from taking over in those times.

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