# Managing A Bullish Market Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-05-15 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Understanding Bear and Bull Markets in Finance Meta Description: Discover the true meaning of 'bear' and 'bull markets' in finance, without the media noise. Learn how to navigate volatile stock markets URL: https://financedigest.com/managing-a-bullish-markethtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fde290318-6-1736838913326-compressed.jpg) _By **Ewan Rosie**, Head of Advice,_ [_Cooper Parry Wealth_](https://www.cooperparrywealth.com/) _._ COVID 19 has transformed the way businesses work with their customers and their employees. And with this evolution has come a rise of new terms in the media – ‘new normal’, ‘shielding’ and so on. In the finance industry there’s enough jargon to last a lifetime and it can be hard to truly understand what’s going on. Cooper Parry Wealth has been advising clients during these uncertain times in a [way that is easy to digest and simply explains](https://www.financedigest.com/explainer-ukraine-looks-for-ways-to-get-its-grain-out.html "Explainer-Ukraine looks for ways to get its grain out") the facts – without the media noise! **Two of these [terms are ‘bear’ and ‘bull markets’](https://www.financedigest.com/sheet-metal-fabrication-services-market-to-surge-at-a-robust-pace-in-terms-of-revenue-over-2026.html "Sheet Metal Fabrication Services Market to Surge at a Robust Pace In Terms Of Revenue Over 2026") – what do they really mean?** The terms ‘bear-market’ and ‘bull-market’ have begun to see a rise in visibility across the media due to the [volatile performance of global stock](https://www.financedigest.com/global-stocks-trade-higher-at-the-end-of-a-volatile-month.html "Global stocks trade higher at the end of a volatile month") markets. Whilst there’s no strict definition of the phrases, they’ve generally come to be known as: - **[Bear Market](https://www.financedigest.com/protecting-stock-portfolios-in-a-bear-market.html "Protecting Stock Portfolios in a Bear Market") – When Prices are Falling: Stock Market Reduction of 20% or more.** - **Bull Market – When [Prices are Rising:](https://www.financedigest.com/uniper-rescue-plan-takes-shape-with-price-rises-possible.html "Uniper rescue plan takes shape, with price rises possible") Stock Market Increase of 20% or more.** [**Markets through the years**](https://www.financedigest.com/global-automotive-brake-system-market-is-expected-to-witness-a-rise-of-3-cagr-between-the-forecast-years-of-2020-2030.html "Global Automotive Brake System Market is expected to witness a rise of 3% CAGR between the forecast years of 2020-2030") [Vanguard](https://www.vanguard.co.uk/documents/adv/literature/bear-and-bull-chart_uk_en_pro.pdf) recently released a chart, showing the UK stock market (FTSE All Share TR Index) over the last one hundred years and how many times it has changed from a bear to a bull market, and vice versa. The graph shows that there are 103 bull [market years](https://www.financedigest.com/puma-confirms-full-year-outlook-flags-market-volatility.html "Puma confirms full-year outlook, flags market volatility"), compared to 16 bear market years, with the highest being the eleven year period to October 1987, with 1,675% of growth. This makes the [outlook feel a lot less bleak](https://www.financedigest.com/britains-bleak-outlook-sets-sterling-to-downward-spiral.html "Britain’s bleak outlook sets sterling to downward spiral")! Of course, there will still be regional differences that will also depend on how certain countries are trying to help businesses through the [COVID-19 pandemic](https://www.financedigest.com/uk-sees-biggest-rise-in-foreign-workers-since-covid-19-pandemic.html "UK sees biggest rise in foreign workers since COVID-19 pandemic"). For instance, when it first broke out in January in China, the MSCI China [Index saw a fall](https://www.financedigest.com/world-food-price-index-falls-for-sixth-month-in-sept-fao.html "World food price index falls for sixth month in Sept -FAO") of just 18%, not entering a bear market and in the US, the S&P 500 Index has recovered strongly from its March low. **Where do we go from here?** The truth is that no-one can [predict where markets](https://www.financedigest.com/covid-19-impact-on-attitude-and-heading-reference-systems-market-volume-analysis-future-prediction-industry-overview-and-forecast-2028.html "Covid-19 Impact On Attitude and Heading Reference Systems Market | Volume, Analysis, Future Prediction, Industry Overview And Forecast 2028") are going to go in the short-term. But history tells us that we have always recovered from our most [challenging times and you need to be invested](https://www.financedigest.com/global-lycopene-market-outlook-business-challenges-investment-opportunities-progression-status-revenue-expectation-and-forecast-2022-2029.html "Global Lycopene Market Outlook Business Challenges, Investment Opportunities, Progression Status, Revenue Expectation and Forecast 2022-2029") at this point to fully benefit. A well structured investment portfolio should be globally diversified to help you weather the storm of [bear](https://www.financedigest.com/protecting-stock-portfolios-in-a-bear-market.html) markets and this helps an [investor behaviourally as it allows them to feel comfortable](https://www.financedigest.com/chinas-patchy-covid-easing-sows-confusion-but-comforts-investors.html "China’s patchy COVID easing sows confusion but comforts investors") with the returns received, so they can keep their discipline and capture the recovery as and when it happens. As things stand, we [don’t know](https://www.financedigest.com/women-in-technology-that-you-should-know-but-probably-dont.html "Women In Technology That You Should Know (But Probably Don’t)") what the full impact of COVID-19 on the economy, or the world will be! But individuals and [businesses are adapting and finding new ways](https://www.financedigest.com/five-ways-businesses-can-prepare-themselves-for-the-digital-economy-be-kaler-pilgrim.html "Five ways businesses can prepare themselves for the digital economy – Be Kaler Pilgrim") to achieve their goals. Yes, there may be bumps in the road, but there always is on a short-term view. Keep a longer-term mindset, with strong discipline and [investors will get their rewards](https://www.financedigest.com/p2p-investors-polled-on-their-thoughts-and-opinions-on-risks-vs-rewards.html "P2P Investors Polled on Their Thoughts and Opinions on Risks vs Rewards"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---