Where do ‘bear’ and ‘bull’ market come from?

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Imagine a bear attacking its prey and swiping its paw downwards.

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Similarly, when the stock market trend declines, we call it a bear market.

Now consider a bull that attacks its prey with its sharp horns in an upward motion.

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When the market notices upward trends, we call it a bull market.

These attacks are metaphors for the movement of markets.

Prolonged falling prices characterise the bear market when the securities fall 20% or more.

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This period ends when the prices reach a point where they can no longer drop, giving rise to the investor’s sentiments.

When the stocks gain 20% from the recent low, a bull market sets in, marking a broad recovery in the market.

However, predicting when the bear market will end and when prices have reached the bottom is difficult.

Thus, making a recovery is a complex procedure.