---
title: What are bear and bull markets?
description: "Bull and Bear Market are terms used for describing the phase of stock market. - **Bull market**: Rising index / stock prices, investor optimism, strong economy. Generally, wealth is made by investors during a bull market. - **Bear market**: Falling…"
url: "https://arafinserv.com/fa/beginners-guide-to-stocks/what-are-bear-and-bull-markets/"
updated: "2025-11-20"
category: Beginner’s Guide to Stocks
---

# What are bear and bull markets?

Bull and Bear Market are terms used for describing the phase of stock market.

- **Bull market**: Rising index / stock prices, investor optimism, strong economy. Generally, wealth is made by investors during a bull market.
- **Bear market**: Falling index / stock prices (20%+ decline), pessimism, economic slowdown. Generally, gives an opportunity to buy quality shares whose prices have fallen.

Markets move in cycles, and long-term investors should account for both. Investing in mutual funds through a Systematic Investment Plan (SIP) generally aids in long-term wealth creation, as it allows you to accumulate more units during bear markets and benefits from rupee cost averaging.