Bull Market vs Bear Market
Descriptive market labels whose dates and thresholds vary by index, methodology, and purpose.
Bull and bear markets are labels for sustained advances and declines in a selected market or asset group. The common 20% thresholds are conventions rather than universal definitions, and different sectors, countries, currencies, and indexes can be in different regimes at the same time.
Frequently Asked Questions
Can a market switch labels without a clear economic turning point?
Yes. Threshold-based labels depend on chosen highs, lows, dates, and indexes. A technical label can change while economic data, earnings, or market breadth remain mixed.
Can sectors be in different regimes at the same time?
Yes. Relative performance, commodity exposure, rates, regulation, and earnings cycles can produce sector-specific advances and declines even when a broad index shows another pattern.
Do average bull and bear durations predict future regimes?
No. Historical averages depend on sample and methodology and have wide dispersion. They should not be used as countdown clocks.
Should an investor sell everything in a bear market?
No universal action follows from the label. Decisions depend on liabilities, diversification, valuation, taxes, horizon, cash needs, and tolerance for losses.