You will probably experience a bull market and a bear market as you go on your investment journey. We will look closely at the difference between bull market and bear market and how your financial situation may affect each type of market.
1. What is a bull market?
A bull market shows a growing market. The overall economic atmosphere is optimistic and companies seem to grow well. In general, you can expect a further increase in the stock market in the whole bull market. The U.S. Securities and Exchange Commission defines a bull market as a period when the market in broad market index funds has increased by or more than 20 percent for a minimum period of two months. A 20% increase may appear dramatic, but it shows that the economy is actually good.