BULLS AND BEARS



Unlike solid ''bullish'' economic times, a bear market is when the economy is on a decline. Whether the market is known as bulls or bears depends primarily on the predominant trend of stock prices.





Every day stock market activity is making headlines. You'll see one of two famous word in many of those headlines "bulls'' and ''bear.'' One of those words attracts investors and spurs rallies, and the other one calls for terror and caution, and lets anxious investors cash out.





Bulls market is when the buyers are optimistic about the rise in the prices of the shares and, bears market is when the buyers are pessimistic about the rise in the prices of the shares.





Whether the market is defined as bull or bear largely depends on the prevailing trend of stock prices, but that is not the only factor at stake. Some factors related to the bull and bear markets could include:



* Investor Emotions



* Economics Ups And Downs



* Supply And Demand



* Global Conditions



It's the time what determines a bull or bear market.





SECULAR MARKETS





A business cycle that continues for many years, regardless of whether it exists in bull or bear mode, is considered a secular economy. Secular markets last from ten to thirty years, mostly triggered by demographic shifts, major technological developments (such as smart phones devices), and global major events (such as wars, earthquake).





Investor will see above average returns in a secular bull market. Returns in a secular bear market will be lower than average.





Secular bull markets are related to record highs, intense investors confidence and bubbles in the market. Secular bear markets are characterized by frightened investors, lower investments and higher savings, undervalued stocks and low stock prices record.



BULL MARKET



A bull market is when the buyers are optimistic that the share prices will rise. It's the time when share prices rise because the economy is doing well, GDP is rising, and the level of unemployment is low.



It gives confidence to the investors that share prices will rise, and they tend to buy more market shares. At this time the investors who are confident and buy shares are called bulls.



BEAR MARKET



A bear market is when the buyers are pessimistic about the share price increase and the sellers outnumber the market buyers.



A bear market is due to the economy not doing very well, GDP rates are dropping, unemployment is high and recession is approaching with a fair chance. When investors are fearful, they tend to sell their shares instead of buying new ones and are called bears.



What's Driving The Markets In Bull And Bear?



Several economic and social factors affect the stock markets. Increasing growth, high levels of employment, increased GDP, positive economic and social factors are helping investors build confidence to invest money in the share market. This is the main reason a bull market is born.



Besides these, a bull market also be generated by new technologies and companies which encourage investors to invest money in stocks. For example, many businesses allowed investors to bring money into the market during the dot-com bubble of the 1990s, which in turn created a bull market.



On the other hand, declining economy, falling employment levels, dropping GDP and dysfunctional social and economic factors are rising investors trust and forcing them to sell their shares to minimize their losses. This leads to falling stock prices and the creation of a bear market.



The companies are starting to downsize as the economy falls. Rising unemployment makes investors much less willing to invest money in the market. This is moment they need money and they sell their shares and create a market for bears.



How To Forecast A Market For Bull And Bear?



One off the easiest ways to forecast bull or bear market is to realize that ''history repeats itself'' and "what goes up will come down.'' That is if the share prices are rising in the current market.



And if the prices fall in the current market, you can be assured that the share prices will eventually rise again and a bull market will be formed.



While you can not predict exactly when a bull or bear market will be established, there are certain things that can affect an existing market and drive it to change its source.



If a country declares war, a bullish market will be generated as it will produce more employment and the investors will feel confident when they thought they'd win.



A sudden global crisis will always generate a bearish market, as the economies are negatively affected.



Negative news about a company with huge market capitalization has a bad impact on the market and causes a bearish environment. Conversely, positive news generates a bullish demand.





Final Words



A bullish market is a time when demand is higher than stock supply, and leads to higher share prices. A bearish market is a time when the supply is higher than the demand for the shares, leading to a fall in share prices.



It is wise that during a bearish market an investor buys more shares as the shares are available for cheap and sell his / her shares during a bullish market as more people are looking to buy during this time and you can sell your shares at a higher price and book profit.



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