In order to discuss Bear and Bull Market History, one first need to understand the concepts of bull market and bear market.
Generally, when the stock prices in the stock market, soar high, the market condition is said to be bullish. Historically, it has been observed that, in a bull market, increases take place by 50% or even more.
In a bull market situation, investors gain more confidence and start to purchase more shares in order to receive higher return on their invested capital.
Bull Market History
The most significant bull market situation, which continued for the longest period, happened in the 1990s in the stock market of USA.
In fact, USA stock market was experiencing bullish market condition since 1983. When in the period of 2000-2002, NASDAQ crash took place, it affected the US stock market to some extent, but the bullish market condition continued to prevail in the stock market of USA.
When, the stock prices decline heavily in the stock market, the market condition is called to be bearish. Generally, it has been seen that, in a bearish market condition stock prices fall by 15% or even more. In a bear market, people loose their confidence in investing and they try to sell off their shares.
Bear Market History
The bear market situation, which is most famous in the bear market history, took place in the period of 1930-1932, following the Wall Street Crash. In fact, it can be said that, this bearish market condition marked the beginning of the Great Depression. USA stock market experienced bear market situation for a long period of 1967 to 1982, but the extent was not that much.