BEAR MARKET VS BULL MARKET

Today’s FINANCIAL LITERACY LESSON will be focused on BEAR MARKET VS BULL MARKET!(Market is referring to the stock market) Before you invest, it is important that you understand what the market is doing and I hope this post is helpful!

BEAR MARKET

When a market experiences prolonged price declines

Characterized by investors’ pessimism and low confidence

Occurs before or after the economy moves into a recession

A condition in which securities prices fall 20% or more from recent highs for a two-month period

The average length of a bear market is 363 days according to investment company Invesco

A bear market occurs every six years

The Covid-19 bear market started March 11, but entered a bull market a couple weeks later

BULL MARKET

Stock prices are rising

Market sentiment is optimistic

Occurs when there is a rise of 20% or more over a two-month period

The average length of a bull marker is 6.6 years

During this period where more companies start trading through an IPO

For more on bear and bull markets: https://www.investopedia.com/terms/b/bearmarket.asphttps://www.thebalance.com/what-is-a-bear-market-difference-from-a-bull-3305814https://www.nerdwallet.com/article/investing/how-to-invest-during-a-bear-market#:~:text=A%20bear%20market%20is%20defined,well%20as%20for%20individual%20stocks.https://www.thebalance.com/what-is-a-bull-market-3305821https://www.investor.gov/introduction-investing/investing-basics/glossary/bull-markethttps://www.acorns.com/money-basics/investing/what-is-a-bull-market/https://www.investopedia.com/terms/b/bullmarket.asp

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