Bull and Bear Markets…..what are they?

bull_vs_bear.jpgBull markets and bear markets…what are they? Here are some definitions ..

Bear Market:

A market condition in which the prices of securities are falling or are expected to fall. Although figures can vary, a downturn of 15-20% or more in multiple indexes is considered an entry into a bear market.

Bull Market:

A financial market of a certain group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used in respect to the stock market, but really can be applied to anything that is traded, such as bonds, currencies, commodities, etc.

In Definition:

Bull/Bullish Market : Rising market
Bear/Bearish Market : Falling market

Follow General market advice it is one of the best ways to make sure that you don’t fall victim bearish market.

Bull vs Bear Market:

The use of “bull” and “bear” to describe markets comes from the way in which each animal attacks its opponents. That is, a bull thrusts its horns up into the air, and a bear swipes its paws down. These actions are metaphors for the movement of a market: if the trend is up, it is considered a bull market. And if the trend is down, it is considered a bear market.

Bull markets are by optimism:

Bull markets are characterized by optimism, investor confidence and expectations that strong results will continue. Of course, no bull market can last forever, and sooner or later a bear market (in which prices fall) will come.

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