A bull market is when investment prices are generally going up and people feel good about the economy. A bear market is the opposite. Prices are falling (typically 20% or more from a recent high) and people are nervous. Both are a completely normal part of investing. They come and go.
Walk through the numbers
If a stock index climbs from 4,000 to 5,000 over two years, that is a bull market. If it then falls from 5,000 to 3,900, a drop of 22%, that is a bear market.
Both happen again and again. Knowing that bear markets are normal makes it easier to keep investing through them instead of selling at the bottom.
Related terms
For education only and not personalized investment advice. Examples are hypothetical illustrations, not a prediction or a promise of results. All investing involves risk, including the possible loss of principal.