Bull Market or Bear Market: The Real Difference Is What You Do Next

The U.S. stock market has a history of strong positive returns, averaging 10% per year over nearly 100 years. Bull markets are characterized by an upward trend in stock prices, bringing confidence and excitement among investors. Bear markets, on the other hand, are marked by a decline of 20% or more from a recent high. Both markets are not just short-term fluctuations but significant shifts that affect the entire market over an extended period.

Despite the ups and downs, the long-term trend of the stock market remains positive. For long-term investors, a bear market can present opportunities to buy stocks at lower prices, making it a good time to invest more. The key is to maintain a long-term perspective and stick to your investment plan, buying stocks regularly to ride out the inevitable market cycles.