Metis AM
Over the last few decades, UK and global stock markets have cycled through multiple “bull” and “bear” periods. As an investor, you might have heard these terms but remain unsure of what they mean for your investments in real terms.
- Bull markets are characterised by a strong economy and stock market growth.
- Bear markets typically see share prices decline.
Generally reflecting prolonged market trends rather than short-term fluctuations, these terms give a broader view of ongoing market performance.
On average, UK bull markets last around 6 years and 10 months, according to Vanguard, while bear markets tend to be much shorter, averaging 1 year and 3 months.
That said, these durations can vary significantly. Prior to the Covid-19 pandemic, the UK had seen a decade-long bull market, which was followed by a 66-day bear market in 2020.
While market performance is typically linked to economic growth and stability – including consumer spending – it can also be heavily influenced by investor sentiment. Investors often perpetuate bull and bear trends by buying shares in bull markets and selling them in bear markets.
Read on to discover the key characteristics of bull and bear markets and how they could impact your investment portfolio.
Bull markets see share prices charge ahead in a strong economy
Taking its name from the notion of a bull charging forward, a bull market is when share prices trend upwards over time.
A bull market is typically characterised by:
- A strong, growing economy
- Rising employment
- Increasing corporate profits
- Sustained share price increases over a prolonged period.
Typically, prices rise by 20% or more – with the lowest point of the last bear market used as a benchmark.
Usually, a bull market reflects investors’ faith that uptrends will continue. This optimistic outlook means investors are often more likely to buy shares than sell them, resulting in demand exceeding supply and prices being driven higher.
Bear markets see share prices drop in a “retreating” stock market
Like bears hibernating in winter, when global markets retreat, it’s known as a bear market.
During these periods, stock values typically decline as the economy recedes, with unemployment rising and corporate profits declining. Generally, share prices will continuously fall by 20% or more compared to the highest point for the last bull market.
With values dropping, investors become cautious about the risk of buying. Believing poor market performance will continue, they may perpetuate the downward trend by offloading shares. As a result, supply can exceed demand, driving prices down further.
Your investments may only be affected if you sell
In a bear market, many investors can panic and sell their shares to cut their losses. However, in doing so, they effectively lock in their loss and remove the possibility of recovery – while helping to perpetuate the markets’ downward spiral.
While market recovery is not guaranteed, and long-term trends can vary depending on your specific investments, it can be worth remembering that the UK has never seen a permanent bear market. Historically, the FTSE 100 has repeatedly rebounded from even its most significant downturns and gone on to deliver long-term growth.
As a result, if you’re investing for the long term, a bear market might not have as big an impact on your investments as you might think. Provided you hold your shares, you can retain the opportunity to see their value recover and grow to deliver a positive return.
To learn more about how staying the course can help turn a downswing into a positive return, read our recent blog.
Read more: Busy doing nothing – how to stop reacting to stock market changes
2025 has been a bull market in the UK and elsewhere
On 1 October 2025, the UK FTSE 100 closed at record-high levels, the Guardian reports.
Meanwhile, global markets reported their best-performing September since 2013.
In the midst of a bull market, investors can sometimes be wary of buying while prices are high. However, as discussed above, this may only be a concern if you plan to sell in the short-term.
Since the markets have historically trended upwards over time, you are still likely to achieve a positive return when buying shares in a bull market if you’re investing for the long term. Even if a bear market followed soon after you purchased shares, you may still see their value increase in the long run.
Of course, there is always an inherent element of risk when investing, and returns are not guaranteed. Remember to consider your time frame and risk appetite when building your portfolio – this is something our team can help with.
Get in touch
Helping you take advantage of opportunities in a bull market and supporting you in achieving long-term growth through a bear market, our financial planners can help define an investment strategy tailored to your needs.
Staying on hand to support as the markets change, we can help manage your investments – so you can live your life with confidence.
Contact us by emailing enquiries@metiswealth.co.uk or calling 0345 450 5670 to find out what we can do for you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.