What is Bulls and Bear market?

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WHAT IS BULL MARKET?
The bull market term signifies investors confidence and optimism regarding the market. The bull market is a sign that the investors have high expectations from the market and the positive results will continue for a long time.

Generally, the bull market term is used to express the price movement of the stock market but it applies to all the financial markets.
It can be currencies, bonds, and commodities, etc.
When the market is on bullish trend then in the economy everything will be growing GDP, rising prices of financial instruments, the supply of jobs, etc. Everything will be positive.
There is no specific metric used to identify a bull market. Nonetheless, perhaps the most common definition of a bull market is a situation in which stock prices rise by 20%, usually after a drop of 20% and before a second 20% decline.


WHAT IS BEAR MARKET?


The reverse of the Bull Market is a bear market. Bear market signifies bad economy, recession, and fall in prices of financial instruments.
When the market is bear that means the investor’s behavior during a bearish market is highly pessimistic due to fear of falling prices and this trend will continue for a longer time.

The causes of a bear market a weak or slowing or sluggish economy will bring with it a bear market. The signs of a weak or slowing economy are typically low employment, low disposable income, weak productivity and a drop in business profits. In addition, any intervention by the government in the economy can also trigger a bear market.
Bear market, changes in tax rate or in the fund rate can lead bear market. Avoid the stocks that set off the positively trending markets in the past stage.


WHY DO WE USE BULL AND BEAR TO EXPRESS THE TRENDS?

These two animals the bull and the bear have got different ways to attack their opponents.
A bull thrusts its horns up into the air in upwards direction and the bear swipes its paws downwards.
This is the reason the bull and bear is used to signify both trends in the market. This way if the market has uptrend then it is a bull market and if the market has got downtrend then it is a bear market.
Alliance research provides best share marketing tips of nitty-gritty of market in efficient way. When market suffers to bulls and bear, our highly research expert team will provide all the information regarding to ups and downs of the markets.

Comments

  1. Phani Kumar12 June 2020 at 02:12

    Thanks, This post is good. Your posts are helpful and provide valuable information.
    Marico
    Bharti Infratel
    Godrej Consumer Products    .

    ReplyDelete

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