Bull vs. Bear Market: Explained Simply for Kids
Bull = up, bear = down. What the terms mean, the trick to remember them, and why staying calm through both wins.
Key takeaways
- A bull market is a stretch when prices are mostly rising; a bear market is when they've fallen a lot, often defined as down about 20% or more.
- An easy memory trick: a bull thrusts its horns up, a bear swipes its paws down.
- The names matter far less than the attitude — nobody can reliably time the turns.
Bull markets and bear markets are just nicknames for which way the stock market is generally heading.
- A bull market is a stretch when prices are mostly rising and people feel optimistic.
- A bear market is a stretch when prices have fallen a lot (often defined as down about 20% or more) and people feel gloomy.
The trick to remember which is which
A bull attacks by thrusting its horns up. A bear swipes its paws down. So: bull = up, bear = down. Kids remember it instantly.
The part that actually matters
The names aren’t the point — the attitude is. Markets have swung between bull and bear runs over and over throughout history, and nobody can reliably predict the turns. Over long periods, though, the market has spent more time rising than falling, which is why long-term investors try not to panic in a bear market or get overconfident in a bull one.
A bear market can even be a quiet opportunity: if you have time on your side, falling prices mean you’re buying more for your money. That’s the exact opposite of the fear most people feel — and a great lesson for a kid watching a red day.
The calm lesson for a young investor
Bull and bear markets both come and go. The people who do best are usually the ones who keep steady through both — not the ones who try to guess the next turn. A kid who learns that early has a temperament most adults never develop.
This explains the terms. It isn’t a prediction or advice about timing the market — which even professionals rarely do well.
Frequently asked questions
What is a bull market?
A bull market is a period when stock prices are generally rising and investors feel optimistic. 'Bull' means up.
What is a bear market?
A bear market is a period when prices have fallen significantly — often defined as a drop of about 20% or more — and investors feel pessimistic. 'Bear' means down.
How do you remember the difference between a bull and a bear market?
A bull thrusts its horns up (prices up) and a bear swipes its paws down (prices down). Bull = up, bear = down.
Should you sell in a bear market?
Nobody can reliably time the market's turns, and it has historically spent more time rising than falling. Long-term investors generally try to stay steady through both bull and bear markets rather than react to them. This isn't advice for your situation.
Written by Josh Ackerman
Founder of MemoryBank. A computer scientist and M.B.A. with 20+ years of investing and technology experience, Josh built the first MemoryBank in his basement so his three kids could watch their own accounts grow. More about Josh →
See it in one place
MemoryBank shows your kid's UTMA, 529, Roth IRA, brokerage, and savings in one place — across every institution — and explains their accounts and how investing works in age-appropriate terms they actually understand.
Related guides
What Is a Kids' Investment Dashboard? (And Do You Need One?)
The view over a child's real accounts, built for the kid. What a kids' investment dashboard is, how it differs from a brokerage app, and whether you need one.
At What Age Can You Open a Brokerage Account?
18 for your own account — but a kid of any age can own investments through the right account type.
How to Explain Inflation to Kids (Why a Dollar Buys Less)
Why the same dollar buys a little less each year — in words a child understands, plus the reason investing exists in the first place.
MemoryBank is a display and education tool, not a financial advisor. Nothing here is investment, tax, or legal advice. Verify program details with the IRS, your tax advisor, or a licensed financial professional before making decisions.