Bull vs. Bear Market: What They Mean and How to Tell Them Apart
A bull market is a long period of rising prices; a bear market is a long decline. Bulls buy and expect a rise, bears sell and expect a drop.
Where the names come from
A bull strikes with its horns from the bottom up, a bear swipes with its paw from the top down — that's how they became linked to rises and falls. In the stock market, a bear market often means an index falling 20% or more from its high.
| Bull market | Bear market | |
|---|---|---|
| Prices | Rise for months and years | Fall for months and years |
| Mood | Optimism, greed | Fear, apathy |
| News | Mostly good | Mostly bad |
| Typical mistake | Buying at the highs out of FOMO | Selling at the bottom out of fear |
How investors can approach it
- Don't try to guess when the phase will change — even professionals can't do it.
- Stick to your plan and regular purchases — see DCA.
- Diversify your portfolio — more in diversification explained simply.
- Watch out for FOMO on the way up and panic on the way down.
How to stay steady in both phases is covered in the lesson on investor psychology.
Aspiro Invest — a medium-term portfolio: what to hold, when to review it and where the protective levels are.
- A bull market is a long rise, a bear market is a long decline.
- The phases alternate, but you can't time the switch.
- What matters most is a plan and diversification.
Frequently asked questions
How long does a bear market last?
It varies: from a few months to several years. It can't be predicted in advance.
What is a “bull trap”?
A short rise in a falling market that lures in buyers, after which the decline continues.
Can you make money in a bear market?
Experienced traders open shorts, but that's high risk. Investors more often continue their scheduled purchases.
Free Aspiro Academy
26 lessons on investing and trading from scratch: videos, practice in the Aspiro apps, quizzes and a certificate. Lesson texts are open without sign-up.