The terms bull and bear markets are used to describe the general trend of either increasing or decreasing stick prices. Of course stock prices fluctuate during the course of any trading day. The bear and bull market descriptors describe a trend over a longer period. Some analysts suggest the minimum time period is two months and the general price change needs to be plus or minus twenty percent.
The term bull market is when the stock market is increasing in price. These increases usually begin when the market is at its lowest ebb. You can see with gold stocks over the past few years. When the cycle changes and things begin improving the investing market feels there are profits to be made.
A bear market on the other hand is one where there is a constant decline in stock prices.
Probably the most well known bear market was the decline after the 1929 stock market crash. Following this 90% of share values were wiped in less than five years.
The patterns seen in a bear market tend to be a very big initial drop in values, which pushes a lot of the speculators out of the market. This is followed by a temporary period of stock price increases before the market starts to decline again over a longer period.
But with any cycle after the decreases of the bear market come the rises of the bull market. It is well known that to make money on stocks you try to buy low and sell high. However no one knows where a market will head and knowing when to buy or sell is not easy.
The cycle can not be forgotten and people need to be aware of where the market is going and whether analysts consider conditions to be a bull market or a bear market. - 23309
The term bull market is when the stock market is increasing in price. These increases usually begin when the market is at its lowest ebb. You can see with gold stocks over the past few years. When the cycle changes and things begin improving the investing market feels there are profits to be made.
A bear market on the other hand is one where there is a constant decline in stock prices.
Probably the most well known bear market was the decline after the 1929 stock market crash. Following this 90% of share values were wiped in less than five years.
The patterns seen in a bear market tend to be a very big initial drop in values, which pushes a lot of the speculators out of the market. This is followed by a temporary period of stock price increases before the market starts to decline again over a longer period.
But with any cycle after the decreases of the bear market come the rises of the bull market. It is well known that to make money on stocks you try to buy low and sell high. However no one knows where a market will head and knowing when to buy or sell is not easy.
The cycle can not be forgotten and people need to be aware of where the market is going and whether analysts consider conditions to be a bull market or a bear market. - 23309
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