In this blog Global Market Astro explains its
blog readers the terms used to describe the prevailing market conditions. The
bull market and the bear market conditions are explained using simple terms.
BEAR MARKET
It is a market condition in which the
security prices are facing a downfall. It is generally caused due to the
pessimistic sentiment about the market among the traders and investors. The
investors generally tend to anticipate losses and hence the selling of
securities continues, thus the pessimistic sentiment grows causing further
downfall in the market. The security prices hit the lower during the bearish
market conditions. Some investors use this opportunity for buying the
securities at a low price, expecting an increase of the price in the near
future.
BULL MARKET
This is a market condition in which the
security prices are rising and are expected to rise further. The bull markets
are generally characterized by optimism among investors and traders, positive
expectations of the market that the security prices would increase. The investors generally tend to anticipate profits
as the security prices hit the maximum in a bullish market condition.
NAME CAUSE OF BEAR AND BULL MARKETS
The use of
"bull" and "bear" terms for referring to the markets comes
from the way these animals attack their opponents. Generally a bull stabs its horns up into the air, thus
denoting an upward rise.While a bear swipes its paws down, denoting a downside
fall. These actions are metaphors for the movement of a market. If the trend is
up, it's a bull market and if the trend is down, it's a bear market.
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