Bull and bear markets
Understand why the 20% threshold is the conventional definition.
In this lesson
Bull and bear markets is part of Markets and Stock Orders. This preview shows how investment-universe connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Today’s money mission
Imagine this situation: The NGX drops 30% over 8 months. A friend panics and sells. You hold.
What you need to know
The 20% threshold is the conventional definition. Bull markets: rising prices, strong economy, investor confidence. Bear markets: falling prices (20%+ from peak), often recession-linked, investor fear. Both are normal parts of the market cycle — the skill is managing behaviour appropriately in each phase.
Real-life example
Real-life money moment: The NGX drops 30% over 8 months. A friend panics and sells. You hold. Which scenario, historically speaking, is most likely to occur next? The key lesson is: Historical pattern: every major market decline in history has eventually been followed by recovery and new highs (for broad market indices).
Progress Penguin connection
Open the investment simulator and run a portfolio through 30 simulated years that include both bull and bear periods. Check the final balance against staying in cash during the bear markets. Consistent investment through bear markets almost always outperforms attempts to avoid them.
Activity preview
Try the money challenge
Run the investment model and test: the 20% threshold is the conventional definition. Adjust one variable — time, rate, or amount — and note which has the biggest effect on the final balance.
Try one real money action
Open Tasks and submit proof for one task, or open Requests and make a deposit request. Parent approval can happen later.
Quiz preview
A 'bull market' means:
The NGX drops 30% over 8 months. A friend panics and sells. You hold. Which scenario, historically speaking, is most likely to occur next?