Bull vs Bear: What's Really Going On in Your Portfolio?

Heard people throw around “bull market” and “bear market” but never actually understood what they mean? Let’s break it down.

Bull Market = Green Lights Everywhere When the S&P 500 climbs 20%+ over at least two months, that’s technically a bull market. In reality, it means most stocks are trending upward over an extended period. The vibe? Optimism. Consumers spend more, the economy hums, asset values rise. People feel richer = they invest more = market goes even higher. It’s a positive feedback loop.

Bear Market = Winter is Coming Opposite story: 20%+ drop in prices. The psychology flips. Investors pull cash to protect savings. Spending drops. Economic pessimism sets in. During the Great Recession (2008), stocks tanked 50%. The Great Depression? 83% collapse. Brutal.

Here’s the Thing: Bulls Win Long-Term Since 1928, the S&P 500 has experienced 26 bear markets vs. 27 bull markets. But bull markets last ~3 years on average while bear markets average ~10 months. And bull gains far outpace bear losses.

The 2020 Plot Twist Remember the COVID crash? March 2020 saw a 30% plunge in days—fastest in history. Then plot twist: within 33 trading days, the market hit all-time highs. Fastest bear-to-bull recovery ever. That’s a “black swan” event: unpredictable disaster, instant market chaos.

What It Means for You If you’re truly long-term, ignore the noise. The historical trend is up. Panic-selling at the bottom or FOMO-buying at the peak? That’s how portfolios get damaged. Dollar-cost averaging (investing regularly, regardless of market conditions) smooths out the ride. Match your risk tolerance, have a strategy, and don’t let emotions drive decisions.