Bull and Bear Markets

Bull and Bear markets are the stock market terms, used to refer the trends of the markets. It also deals with commodities, bonds, and stocks.

Bull Market

Bull Market is defined as a marketplace wherein the prices of securities are continuously rising up or are anticipated to be rising up over a period of time. This kind of market encourages the buying of the securities or commodities, as conditions are favorable for the buyer and seller.
The key features of such markets are an optimistic behavior of the investor, the rate of return is higher. Furthur, the forecasting of the market is a bit difficult. Those investors who expect the prices to rise are called Bulls and the sentiment is called Bullish.

Bear Market

Bear Market is defined as a marketplace wherein the prices of securities are gradually declining or are anticipated to be declining up over a period of time. In this kind of market, the buying of securities or commodities are not encouraged irrespective of the Bull market where it is encouraged.
The salient features of such market are a pessimistic behavior of investors, rate of return is declining in a shorter period of time. Those investors who consider that prices will be falling are called bears and the sentiment is called bearish.

The difference between Bull and Bear Market

Basis of Difference 

Bull Market

Bear Market

Meaning The market is considered as a bull market when there is a rise in the overall performance of the market. The market is considered as a bear market when there is a decline in the overall performance of the market.
The confidence of an investor The confidence of investors is higher and optimistic in nature. In a bear market, the behavior of investor is very pessimistic.
Growth The growth in the market is rapid and aggressively upward. The market losses its growth gradually.
Prices Prices of stocks are rapidly rising. The stock prices are decreasing in a shorter period of time.
Indicator The market indicators are string and economy grows firmly. The economy gradually loses its dignity and market indicators are very weak.

 

Employment Rate of employment is very high The level of employment is reduced and level of unemployment is gradually increasing.
Market The markets are becoming stronger and stronger. Month by month the market loses its worth.
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