The terminology Bull market and bear markets are generally used to describe the direction of the market either up or down. Stock prices up and down both during a trading day, and from one day to the next. But terms such as bull and bear describe the trend over the long term. Many analysts use a minimum analysis period of two years to determine if a change is a trend or just a change. They also feel the market needs to move at least 20%.
A bull market describes a market where prices are generally on the increase. A bull market often starts when market confidence is at its lowest. At this time investor confidence starts to increase and there is an expectation gains will be made on rising stock prices. This is happening now in the gold stocks market.
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.
Most bear markets work with the pattern where there is a large initial decrease in values which eliminates many of the speculators from the market. Then there may be a short period when prices rise and investors think the worst is over. This is then followed by a period when there is simply a sustained decline.
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.
For many people the idea that markets have cycle is forgotten. One can make money in both a bear and a bull market. - 23210
A bull market describes a market where prices are generally on the increase. A bull market often starts when market confidence is at its lowest. At this time investor confidence starts to increase and there is an expectation gains will be made on rising stock prices. This is happening now in the gold stocks market.
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.
Most bear markets work with the pattern where there is a large initial decrease in values which eliminates many of the speculators from the market. Then there may be a short period when prices rise and investors think the worst is over. This is then followed by a period when there is simply a sustained decline.
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.
For many people the idea that markets have cycle is forgotten. One can make money in both a bear and a bull market. - 23210
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