| Definition |
A market condition where prices are rising or expected to rise. |
A market condition where prices are falling or expected to fall. |
| Investor Sentiment |
Positive and optimistic; investors expect growth. |
Negative and pessimistic; investors expect losses. |
| Stock Prices |
Generally increasing over time. |
Generally decreasing over time. |
| Market Trend |
Upward trend in stock prices. |
Downward trend in stock prices. |
| Economic Outlook |
Strong economy with growth indicators. |
Weak economy with signs of slowdown or recession. |
| GDP Growth |
Usually increasing or stable. |
Often decreasing or negative. |
| Unemployment |
Low or falling unemployment rates. |
High or rising unemployment rates. |
| Inflation |
Moderate inflation is common. |
Can be low, or high during stagflation. |
| Interest Rates |
Usually low or stable to encourage growth. |
May be lowered to stimulate spending or raised to control inflation. |
| Corporate Profits |
Rising corporate earnings and profits. |
Declining corporate earnings and profits. |
| Trading Volume |
High trading activity and participation. |
Low trading volume due to fear or withdrawal. |
| Volatility |
Generally lower, stable price movements. |
Higher volatility and price swings. |
| Investment Strategy |
Investors buy and hold, expecting growth. |
Investors sell or short sell to avoid losses. |
| Returns |
Higher potential for gains and wealth creation. |
Increased risk of losses and capital erosion. |
| Psychology |
Greed and confidence drive the market. |
Fear and panic dominate decision-making. |
| Media Tone |
Positive news and bullish market coverage. |
Negative news and bearish market coverage. |
| Duration |
Can last months or years. |
Usually shorter than bull markets, but impactful. |
| Opportunities |
Good time to invest in growth and equity funds. |
Good time for bargain buying or defensive investing. |
| Example Periods (India) |
2003–2007 bull run, post-COVID rally (2020–2021). |
2008 global financial crisis, COVID crash (March 2020). |
| Investor Behavior |
Investors are eager to enter the market. |
Investors tend to exit or avoid the market. |
| IPO Activity |
High number of IPOs due to favorable conditions. |
Fewer IPOs, companies may delay listings. |
| Safe-Haven Assets |
Less demand for gold or bonds. |
Higher demand for gold, bonds, and fixed-income assets. |
bull market vs bear market