Bull Market
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Revision as of 20:29, 26 August 2018 by wiki_crypto>Zeb.dyor (Created page with "* A bull market is a financial market in which prices are rising or are expected to rise. * The opposite of a bull market is a bear market, which is characterized by fall...")
- A bull market is a financial market in which prices are rising or are expected to rise.
- The opposite of a bull market is a bear market, which is characterized by falling prices and typically shrouded in pessimism. The use of "bull" and "bear" to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air, while a bear swipes its paws downward. These actions are metaphors for the movement of a market. If the trend is up, it's a bull market. If the trend is down, it's a bear market.
- Bull markets and bear markets often coincide with the economic cycle, which consists of four phases: expansion, peak, contraction and trough. The onset of a bull market is often a leading indicator of economic expansion. Because public sentiment about future economic conditions drives stock prices, the market frequently rises even before broader economic measures, such as gross domestic product (GDP) growth, begin to tick up. Likewise, bear markets usually set in before economic contraction takes hold. A look back at a typical U.S. recession reveals a falling stock market several months ahead of GDP decline.
