Intro To The U.S. Stock Market For Beginners

Bull And Bear Markets

While bulls and bears are terrifying to run into on hikes, they mean different things in the stock market. A bear market indicates a dropping (typically 20% or more) index market. A bull market is generally followed by bear markets and vice versa and predicts future economic patterns.

A bull market signifies good luck and economic growth for the investor. A bear market indicates the opposite and causes investors to sell. On the bright side, bull markets tend to last longer and is beneficial for you to grow your money long-term.

The S&P 500 has 500 of the largest U.S. stocks and produces an annual average return of ~7% when investors reinvested dividends, and inflation adjustment is considered. This means that you’d have about $7,600 today if you invested $1,000 30 years ago.