What is Bear Market ?
The market can either move upwards or downwards. Bull and Bear are terms which are used to denote the market movement.
A period in the market when the prices of stocks are either expected to rise or already rising consistently is known as a Bull phase or Bull Market. The term bull can be used for all financial instruments like stocks, bonds, gold, currencies etc.
A growing market or optimistic environment in the market is denoted by the term Bull. Some indicators of a Bull Market include:
· A rise in the Gross Domestic Product (GDP) of the nation
· A consistent rise in the prices of stocks
· Rise in the employment rate of the country
The bull market is seen as an ocean of profit-making opportunities for investors due to the consistent rise in stock prices. To make the most out of these opportunities the investor must be aware about the arrival of the bull phase of the market. An investment advisor can help in en-cashing such opportunities by providing research-based recommendations.
What is Bull Market?
A phase in the market which is just opposite of the bull phase is known as Bear market or bullish phase of the market.
It is a phase when the prices of stocks surge consistently for a certain period. The prices of stocks have either already started declining or are expected to decline during a bear market.
A bear market is often used as an indicator by many economies around the world to mark the arrival of economic recession.
Some of the indicators of a Bearish Market include:
· A growth in the unemployment rate of the nation
· Sudden Fall in the stock prices
The bearish phase of the market may appear to be bad, but the markets overcome it. A bear market requires the investor to adjust their portfolio accordingly. This is where diversification is very important.
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