What are bear and bull markets?
Used to describe how stock markets are doing in general – that is, whether they are appreciating or depreciating in value – these two terms are constantly buzzing around the investing world. At the same time, because the market is determined by investors’ attitudes, these terms also denote how investors feel about the market and the ensuing trend. Simply put, a bull market refers to a market that is on the rise. It is typified by a sustained increase in market share prices. In such times, investors have faith that the uptrend will continue in the long term. Typically, the country’s economy is strong and employment levels are high. On the other hand, a bear market is one that is in decline. Share prices are continuously dropping, resulting in a downward trend that investors believe will continue in the long run, which, in turn, perpetuates the spiral. During a bear market, the economy will typically slow down and unemployment will rise as companies begin laying off workers. (For related
