Thursday, 2 June 2011

Bear And Bull Market



Stock Tips

A market trend is a putative tendency of a financial market to move in a particular direction over time.These trends are classified as secular for long time frames, primary for medium time frames, and secondary lasting short times.Traders identify market trends using technical analysis, a framework which characterizes market trends as a predictable price tendencies within the market when price reaches support and resistance levels, varying over time.
The terms bull market and bear market describe upward and downward market trends, respectively, and can be used to describe either the  Stock Tips market as a whole or specific sectors and securities.

Most people who have been investing in or following the stock market for some time are probably well familiar with the terms bear and bull market. What does it really mean?
A bull market refers to a market that is on the rise. It is indicated by a sustained increase in stock market share prices. In such times, investors are convinced that the uptrend will continue in the long term. Typically, the country's economy is strong and employment levels are high. A bull market is a rising market. On the other hand, a bear market is one that is in decline. In bear market Stock Tips share prices are continuously dropping, resulting in a downward trend that investors believe will continue in the long-run, which, in turn, perpetuates the spiral. During a bear market, the economy will typically slow down and unemployment will rise as companies begin laying-off workers. Generally speaking, since the market is determined by investing parties’ attitudes, these terms also denote how investor's feel about the market and the ensuing trend.

A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary, for many, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market


1 comment:

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