Bull Market Examined
To talk more specifically about what this type of market is, it could technically be classified as a market in which prices of stocks are rising and the expectation is that they will continue to rise. Expectations can carry great weight because a this market can often be extended simply on the basis of high investor expectations and confidence. One of the examples that can be readily pointed to is the soaring values of many Internet stocks in the late 1990s and early 2000s. Many Internet stocks had good ideas on how to change the world but did not have a fundamental business case on how they would make money. Many people bought into the theory that the Internet would change the way that the general public conducted their lives. This market eventually ended with the realization that many Internet businesses could not produce the type of profits that their stock values reflected. A bull MKT is simply a time when the stock market is going up. This often will last several years. A bear market often will not sustain its longevity as well as a market will. Many people will try to figure out whether a certain period of time is a bull market vs. bear market. This can be very difficult to do. Chasing the latest tip often results in investors significantly underperforming the markets. The daily swings of the stock market can also make it hard even for seasoned professionals versus when an average investor has time to look at the economy. This should have explained quite clearly what a market is. Many people can be confused about the fundamentals of a bear and bull market. The market is the increase in the stock market whereas the bear market is the decline in the stock market. What can make a market change between markets is simply worsening economic factors or investors’ perceptions on the long-term performance of the economy. These factors often can change overnight and much of the perception is based upon reports published by the government about inflation, gross domestic product, plus a mix of other factors such as consumer confidence or home appreciation.
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