What does Bull vs Bear Market mean?

A bull market is a sustained period of rising prices; a bear market is a drop of 20% or more from recent highs.

A bull market is a sustained period of rising prices (think bull horns charging up). A bear market is a 20%+ drop from recent highs (a bear swiping its paws down). Corrections are 10–20% drops — uncomfortable but normal.

Bull vs Bear Market example

If an index falls from 5,000 to 3,900, that's a 22% drop — past the 20% line most people use to call a bear market. A rise of 20% or more from a recent low is usually called the start of a new bull market.

Common beginner mistake

Selling everything once a bear market is declared. By the time the label is official the drop has already happened, and the sharpest rebounds often come soon after.