We All Love A Bull Market
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.
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.
When a bear markets occurs there is a period of constant stock price decline. The decline is not in one stock but in the bulk of the market.
One of the most memorable bear markets in recent history followed the stock market crash of 1929. In the three years that followed nearly 90% of stock values were wiped out. But obviously things did improve.
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 bull and bear markets are a cycle and one follows another. The problem is that there is no guarantee when the change will come or how long the patterns will last. It is easy to identify in retrospect, but much harder predicting the future.
For many people the idea that markets have cycle is forgotten. One can make money in both a bear and a bull market. - 23229
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.
When a bear markets occurs there is a period of constant stock price decline. The decline is not in one stock but in the bulk of the market.
One of the most memorable bear markets in recent history followed the stock market crash of 1929. In the three years that followed nearly 90% of stock values were wiped out. But obviously things did improve.
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 bull and bear markets are a cycle and one follows another. The problem is that there is no guarantee when the change will come or how long the patterns will last. It is easy to identify in retrospect, but much harder predicting the future.
For many people the idea that markets have cycle is forgotten. One can make money in both a bear and a bull market. - 23229
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posted by X - Men @ 3:37 AM
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