What is a Bull Market?
Bull market is a market where people expect rapid increase in the value of their financial investments. Bull market is characterized by optimism, rising stock prices and belief that stock values will rise in short-term future. Bull market often comes after a lengthy decline.
What is a Bear Market
Bear market is a market where people expect a rapid decrease in the value of their financial investments. Bear market is the opposite to Bull Market.
Bull or Bear markets can last anywhere between couple of weeks to a number of years. They can usually be both divided into three different stages – first the so-said „insiders” phase where the most knowledgable investors start to buy or sell stocks ( depending on whether it’s a beginning of bull or bear market), nothing much happens, except that that these first guys get to the market at a very right time. Secondly there’s the rapid increase together with overall positive or negative news about the market, investors are panicly selling or buying the stock. And during the thrid phase the increase or decrease slows down and eventually the market takes the opposite direction again. There’s a great chance that the bull market will turn into a bear market if everyone start to talk about the stocks in hopes of great revenues – people who are usually not interested in investing at all. That’s often a good sign that the market will turn any time now – time to get rid of your stocks.
