Bear attack downwards, bulls attack upwards—that's how "bear market" and "bull market" get their names. The terms "bear market" and "bull market" are not as arbitrary as some think. These metaphors that describe price trends in a market are rooted in how bears and bulls naturally attack. Bears attack by swiping downward with their paws. And in a bear market, asset prices are generally falling. Bulls attack by charging forward with their horns. In a bull market, asset prices are rising or are expected to rise. The threshold that defines a bear or a bull market is usually a move of 20% or more. But without context, a rigid threshold like that can be misleading because of the base effect. For example, $AAPL lost nearly a quarter of its value between August of 2022 and Jan 2023, which firmly puts it in a “bear market”. But long-term investors in Apple would’ve hardly noticed. On the flip side, but by the same logic, a stock like $LMND or $DOCU that’s massively down can go into a “bull market” rally, but investors who bought at the top will barely notice their losses reduced. #BearMarket #BullMarket #Investing #StockMarket #Stocks #Bears #Bulls #BearsVsBulls #ValueInvesting #LongTerm #BaseEffect #Finance #financetrivia