Bulls and Bears signify the phases of the stock market. If the market indices are indicating an increasing trend it is said to be bullish and similarly if the market indices are indicating an decreasing trend it is said to be bearish.
2006-11-09 06:27:53 · 5 answers · asked by chandan c 2 in Business & Finance ➔ Investing
Bulls charge ahead, making forward progress in an aggressive fashion. Bears hibernate when the climate gets bad.
2006-11-09 06:30:23 · answer #1 · answered by Anonymous · 0⤊ 1⤋
A market participant who believes prices will move higher is called a "bull". Bull markets are generally characterized by high trading volume......where as If an investor is "bearish" they are referred to as a bear because they believe a particular company, industry, sector, or market in general is going to go down.
2006-11-09 13:38:01 · answer #2 · answered by Aey Cee 6 · 0⤊ 0⤋
In investing, financial markets are commonly believed to have market trends that can be classified as primary trends, secondary trends (short-term), and secular trends (long-term). This belief is generally consistent with the non-scientific practice of technical analysis and broadly inconsistent with the efficient markets hypothesis.
A bull market is a prolonged period of time when prices are rising in a financial market faster than their historical average, in contrast to a bear market which is a prolonged period of time when prices are falling.
Investors can be described as having bullish or bearish sentiments. Market trends are witnessed when bulls (buyers) outnumber bears (sellers), or vice versa, consistently over time. In general, a bull or bear market refers to the market and sentiment as a whole but it can also be used to refer to specific securities, sectors, or similar ("bullish on IBM", "bullish on technology stocks" or "bearish on gold", for example).
Bull market
A bull market tends to be associated with increasing investor confidence, motivating investors to buy in anticipation of further capital gains. The longest and most famous bull market was in the 1990s when the U.S. and many other global financial markets grew at their fastest pace ever [1].
In describing financial market behavior, the largest group of market participants is often referred to, metaphorically, as a herd. This is especially relevant to participants in bull markets since bulls are herding animals. A bull market is also described as a bull run. Dow Theory attempts to describe the character of these market movements.
[edit] Bear market
A bear market tends to be accompanied by widespread pessimism. Investors anticipating further losses are motivated to sell, with negative sentiment feeding on itself in a vicious circle. The most famous bear market in history was the Great Depression of the 1930s [2].
Prices fluctuate constantly on the open market; a bear market is not a simple decline, but a substantial drop in the prices of a range of issues over a defined period of time. By one common definition, a bear market is marked by a price decline of 20% or more in a key stock market index from a recent peak over at least a two-month period. [citation needed] However, no consensual definition of a bear market exists to clearly differentiate a primary market trend from a secondary market trend.
2006-11-09 21:41:12 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is based on the traditional attack of the animals. A bear raises its paw and slashes downward with his claws, so a downward moving market is called "bear"
A bull lowers it's head and strikes upward with it's horns, so an upward moving market is called "bull"
2006-11-09 06:36:02 · answer #4 · answered by roamin70 4 · 0⤊ 0⤋
hugs and stampedes
hold or sell
2006-11-09 06:29:43 · answer #5 · answered by q6656303 6 · 0⤊ 1⤋