Er, what is a bull and bear market?
Where do you see this?
Mainly in financial news articles, especially stock market reports, and stock broker notes.
What does it mean?
These are two main animals associated with overall market movement. Bull represent rising equities, bears mean slumping stocks.
A bull market is a prolonged period in which almost all stock prices surge faster than their historical average. Investors are optimistic and indulge in buying spress.
For instance, Japan stocks went on a bull run last year, soaring nearly 60 per cent for the whole of 2013.
A bear market is an extended period in which stock prices slide, usually by more than 20 per cent. There is widespread pessimism, and sometimes there are steep selldowns accompanied by irrational fear.
The most famous bear market was the Wall Street crash of 1929 which eventually led to the Great Depression.
Why is it important?
These two terms encapsulate overall market sentiment and price movements.
It is believed that the terms originated from the nature of these animals. Bears tread with caution while bulls are bold and love to charge forward.
Thus, a bearish investor feels the market will go down while a bullish investor thinks it is headed for new heights.
So you want to use the term? Just say...
"It remains to be seen whether the current bull run of the US stock market will continue through 2014."
Invest, The Sunday Times, January 19 2014, Pg 36
Edit.. wrong post.