Financial Terms Everyone Should Know – Bull & Bear Markets

The economy is a cycle of periods of growth and contraction. The term bull market means that the market is in a period of rising prices. According to Forbes Magazine, there have been 12 bull markets since 1957, averaging 59 months, with the market gaining about 20%.

A bear market is the opposite. It is associated with a time of declining market conditions and typically loses about 20% of its value. There have also been 12 bear markets since 1956, each averaging about 13 months.

Forbes says, “Bull markets are fueled by a number of different factors, including economic growth, low interest rates, a strong labor market and high consumer confidence. Bull markets and bear markets have occurred with predictable regularity over the past century, and both are a normal part of a healthy economic cycle.”

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