Bull Market vs. Bear Market
Sustained upward trend vs. downward trend in stock prices.
Detailed Description
Bull Market vs. Bear Market
What defines a bull market?
A bull market is defined as a period where stock prices increase by 20% or more from recent lows, characterized by rising prices and investor optimism.
What are common characteristics of a bear market?
Bear markets are marked by declining stock prices, negative economic indicators, pessimistic investor sentiment, and increased selling activity.
How do investor behaviors differ in bull and bear markets?
In bull markets, investors are more willing to take risks and adopt aggressive strategies, while in bear markets, fear leads to panic selling and a focus on capital preservation.
What market indicators signal a bull market?
Indicators such as rising stock indices, increasing corporate earnings, and favorable economic data signal a bull market.
How do bull and bear markets typically influence investment strategies?
Bull markets encourage growth-oriented strategies focused on appreciation, while bear markets lead to defensive strategies prioritizing capital preservation.