Bull Markets Vs the Bear Markets

by khalid on 04/09/2011 · 0 comments

The broader stock market can be classified into two: A Bull Market and a Bear Market. When a stock market continuously shows a downward movement it is said to be a bear market and when a stock market continuously moves upward it is termed as a bull market. While talking of stocks when a particular stock value moves upwards it is described as bullish while a stock value whose prices are decreasing is described as bearish.

 

Bull MarketsThese terms are not referred for the short term volatility in the Stock Market. A stock market reflects the economical condition of a country. An economy with a low unemployment rates and a proper interest rates can be said to be doing well and the markets are considered to be bullish. Whereas a bear market takes place during an economic slowdown. The growth gets hampered and investors lose out confidence. There are financial opportunities in both the markets. People make money easily during bull markets as the dips are temporary &  they will recover soon. Because of continuous upward rising they never lose money but they have to be cautious and a stock should be sold when the stock market or the stock is expected to have reached a peak.

Bear markets are opportunities for the investors to pick up stocks at a very low price. People can earn huge money if they invest at the bottom of the bear market as it has the possibility of recovering fast. During bear markets people can invest in bonds, CAs etc to generate profits. They can also invest in defensive stocks such as include government-owned utilities.

 

Bell the Bull says: Bear market or the Bull market both have their own scales to make money when traded intelligently.
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