Bull markets, bear markets, corrections, and crashes
Common market regimes and their limitations.
Bull markets, bear markets, corrections, and crashes
| Concept | Explanation | |---|---| | Bull market | A sustained broad advance supported by improving risk appetite. | | Bear market | A sustained broad decline associated with weakening confidence. | | Correction | A meaningful decline within a larger trend; the precise threshold is a convention, not a law. | | Crash | A rapid and severe market decline. | | Consolidation | A period of sideways or range-bound trading. | | Regime | A broader environment characterized by a recurring combination of growth, inflation, rates, volatility, and risk appetite. |
Labels are generally assigned after price movement has occurred. They help describe context but do not reveal exactly when the regime will end.