A bull market describes a sustained period of rising prices across a broad market or index, generally accompanied by investor optimism, while a bear market describes the opposite — a sustained period of falling prices, commonly defined as a decline of roughly 20% or more from a recent high. Both terms describe the overall market or a broad index, such as the FTSE Bursa Malaysia KLCI, rather than any single stock. There’s no single official body that declares when a bull or bear market begins or ends, and the labels are typically only confirmed in hindsight once a trend has clearly played out over weeks or months — a sharp short-term drop doesn’t automatically mean a bear market has started, and a brief rally doesn’t confirm a bull market either. The terms are useful shorthand for describing market conditions after the fact, but they aren’t reliable predictors of what happens next.
Bull Market and Bear Market
What bull and bear markets mean, the common threshold used to define them, and why the labels are usually only confirmed in hindsight.
Last updated: 12 July 2026
This page presents educational screening criteria and worked examples only — not investment advice or a recommendation to buy or sell any security.