Investing in the stock market can be both exciting and nerve-wracking, especially if you don’t know the difference between a bull market and a bear market. These two terms refer to two opposite trends in the stock market and understanding them is essential for making informed investment decisions. In this post we’ll explore the key differences between a bull market vs bear market.
Investing in the stock market can be both exciting and nerve-wracking, especially if you don’t know the difference between a bull market and a bear market. These two terms refer to two opposite trends in the stock market and understanding them is essential for making informed investment decisions. In this post we’ll explore the key differences between a bull market vs bear market.
What Is A Bull Market?
A bull market refers to a prolonged period of rising stock prices. In these market conditions, investors are optimistic about the future of the economy and are willing to pay higher prices for stocks. This results in a general upward trend in the market and higher profits for investors who buy stocks during this time. They can last for several years and are usually accompanied by low unemployment, increased consumer confidence, and a growing economy.
What Is A Bear Market?
On the other hand, a bear market refers to a prolonged period of falling stock prices. According to the SEC, it is characterized by declining stock prices that drop by a minimum of 20% over a span of two months, and a prevailing pessimistic market sentiment.
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