Market behavior refers to the patterns and trends observed in the buying and selling activities of consumers and businesses within a specific market. It encompasses how prices fluctuate based on supply and demand, as well as how external factors like economic conditions, consumer preferences, and government policies influence these activities. Understanding market behavior helps analysts predict future trends and make informed decisions. For instance, during a recession, consumers may reduce spending, leading to lower prices and affecting the overall performance of stocks and bonds. By studying these behaviors, businesses can adapt their strategies to better meet market demands.