Bull markets vs. bear markets

Bull and bear describe broad market direction, not a forecast.

The two labels

A bull market describes a period when a broad market is rising and optimism is common. A bear market describes a prolonged broad decline and more pessimism.

They are descriptions

These labels help summarize what has happened in a market. They do not tell you exactly when the next turn begins or ends.

Plans face both

Every long-term investor eventually sees both good and bad periods. A diversified, goal-based plan is designed for more than one market mood.

Continue with Long-Term Investing lessons.

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