The terms “bull market” and “bear market” describe the general direction of the stock market or a particular financial market.
What is Bull Market?
A bull market refers to a period when stock prices are rising or are expected to rise. It typically occurs when the economy is strong or improving, and investor confidence is high. In a bull market, investors are optimistic, which leads to increased buying activity, further driving up stock prices. Bull markets can last for months or even years.
The terms “bull” are believed to have originated from the way bulll attacks its opponents, symbolizing the market movements: A bull attacks by thrusting its horns upward, which is analogous to rising prices in the stock market. Thus, a bull market signifies increasing stock prices and positive investor sentiment.
What is Bear Market ?
A bear market refers to a period when stock prices are falling or are expected to fall. It usually happens when the economy is slowing down, unemployment is rising, or other negative economic factors are at play.In a bear market, investors tend to be pessimistic, leading to selling pressure that causes stock prices to decline. Bear markets are often shorter than bull markets but can still last for an extended period.
Why it is call as bear market? Bear, swipes its paws downward when it attacks. This action represents falling prices in the stock market. Therefore, a bear market indicates declining stock prices and negative investor sentiment.
The imagery of these two animals helps capture the prevailing mood in the market: bullish for optimism and rising prices, and bearish for pessimism and falling prices.
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Learn even minor points consciously. With understanding, you will never be bullied by the stock market.
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