What is the Bull vs. Bear market in the Stock market?
The bull market in the Stock market
A bull market is a market situation that is said to be when investors remain confident that the good results will remain to continue in the stock market.
The bull market is mainly related to the Stock market but it is applicable to all the financial markets like Bond, currency, commodities, etc.
What happens during the bull market every, aspect of the economy looks great and developing like increased jobs, rising stock prices, growing GDP, etc.
A Bull market is a condition in which the price of a stock is expected to rise or rising continuously Bull market takes place when the economy is already strong or strengthening in the Stock market.
What exactly is a Bull Market?
The bull market usually marks 20% increase in the stock prices following the previous 20% decline and is followed by another 20% decline.
Characteristics of a bull market
There are many things that accomplish a bull market for starting that happens during the period when the economy keeps strengthening or already strong.
With the GDP growth, the bull market takes place in the stock market.
The bear market in the Stock market
A bear market is just the opposite of the Bull market, Bear market is a situation that is said to be when the majority of the public feels fear and starts selling the Stock in the stock market.
A bull market is said to be when there are fewer jobs, recession, and the falling price of the stocks in the stock market.
During the bear market, it is very tough for investors to book profit in short-term investments.
What exactly is the Bear market?
A bear market is a market when the price of stock keeps decreasing and due to the fear investors keep selling their stocks in the stock market, It is described when securities prices fall 20% more from the recent highs.
The bear market can be long-term and cyclical also the former bear market lasts for a few weeks, months, years, or even decades.
Put options, Short selling, and inverse ETFs are ways by which investors can make money during a bear market.
Changes in the Tax rates and changes in the federal funds rate can bring a bear market, Also when investors drop confidence it may also lead towards a bear market because when investors think that something is about to happen then they take actions and start selling their Stock in the stock market to avoid losses.
A Bear market can last for a few months, weeks, or for multiple years also a secular bear market can last for more than 10 to 20 years.
A cyclical bear market lasts for anywhere between a week to several months.
So, we learned today about the Bull market and the bear market in the stock market so the conclusion of the article is that in the stock market both bull and bear markets take place so always do your research before doing investments and stock market Education is very important.