Bull Market / Bear Market

Bull and bear market have a tremendous effect on stock choices.Generally, bull markets tend to precede economic uptrends (also called economic rebound, economic recovery, or economic growth), while bear markets tend to precede economic downtrends( also called recession,depression, or economic contraction).

The stock market's movement is based on the fact that stock prices go up (or down) based on people's buying or selling behavior. If more people are buying stock(versus selling), then stock prices rise. If more people are selling stocks, then stock prices fall. Why do people buy or sell a stock?
It can be explained in one word: expectations. People generally buy (or sell) stock in expectation of economic events. If they feel that times are getting bad and the economic stats back them up ( in the form of raising unemployment, shrinking corporate profits, cutbacks in consumer spending , and so on ), then they become more cautious, which can have a couple of results:

They sell stock that they currently own.
They don't buy stock because they feel that stocks won't do well.

Of course, when the business is doing well, the reverse is true.