Er, what is a bull and bear
market?
Where do you see
this?
Mainly in financial news articles, especially stock market
reports, and stock broker notes.
What does it mean?
These are two main animals associated with overall market
movement. Bull represent rising equities, bears mean slumping
stocks.
A bull market is a prolonged period in which almost
all stock prices surge faster than their historical average.
Investors are optimistic and indulge in buying spress.
For instance, Japan stocks went on a bull run last
year, soaring nearly 60 per cent for the whole of 2013.
A bear market is an extended period in which stock
prices slide, usually by more than 20 per cent. There is widespread
pessimism, and sometimes there are steep selldowns accompanied by
irrational fear.
The most famous bear market was the Wall Street
crash of 1929 which eventually led to the Great Depression.
Why is it important?
These two terms encapsulate overall market sentiment and price
movements.
It is believed that the terms originated from the
nature of these animals. Bears tread with caution while bulls are
bold and love to charge forward.
Thus, a bearish investor feels the market will go
down while a bullish investor thinks it is headed for new
heights.
So you want to use the term? Just say...
"It remains to be seen whether the current bull run of the US
stock market will continue through 2014."
Invest, The Sunday Times, January 19 2014, Pg 36