A ‘bear market’ is a situation in which stock prices drop from a recent peak by more than 20%.
When the stock price grows by more than 20%, it is considered a ‘bull market.’
These words are derived from the manner in which animals attack their foes. While a bull attacks by moving its horns upwards, a bear with its claws strikes down.
Bull and bear market periods normally last a few years and are characterised by many regular ups and downs.
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