what a bear stock market and a bull stock market?

How the stock Market works

what a bear stock market and a bull stock market?

Investing in the stock market can be a very attractive activity in which a good potential returns can be achieved. Nevertheless, you should always take into account the upward and downward trends, and thus potential losses. The different trends are indicated by "bear market" or bear market, and "bull market" or bull market. But what exactly do these terms and where do they come from?


Investing on the stock market ups and downs of shares

Shares are an extremely attractive way to invest money . By buying shares at a low price and sell at a high price, you can make a nice profit. In addition, it may also invest in equity yield loss. To achieve returns a good knowledge of the financial affairs is needed. In addition, you should be well aware of the specific terms used in the stock market.

Fair: what is a "bear market" or bear market?

Share prices down

a bear market in the stock market means that stocks in general show a downward trend. This may be because the economy is in a bad situation arising or because investors are inundated with negative economic news. In a bear market does not go straight down, but the trend goes in fluctuations: share prices go down, then back up a moment, and then down again. Importantly, the continuing overall trend is downwards.

For example, Example of a bear market, the stock market crash of 2008, after the collapse of the housing market in America and the bankruptcy of the Lehman Brothers bank. Symbolism of the bear market Why is there the name "bear market" is selected? This is no coincidence.

The bear is an animal that attacks by precipitating movements of the jaws and its prey works that way to the ground. The essence of the symbolism of the bear market is the downward movement. Not only the market itself can be so called, but also those who have pessimistic views about the stock market.

What is a "bull market" or bull market?

Stocks go up

a bull market is the opposite of a bear market comes down to is that the stock market is in an upward trend. Among investors is optimism asset and one can only expect positive developments.

Share prices rise sharply, and it does not seem to. More and more investors are steps in the boot of the "bull market" and want to make big profits. Example of a bull market is the sharp appreciation of gold since the economic crisis of 2008.

It says that gold is in a bull market is. Symbolism of the bull market in the bull market is also the name is not chosen by chance. If a bull attacked pulls, it has the specific property to lift its prey.

Hence the reference to the bull in the investment world: in a bull market shares are boosted. This upward thrust can remain for a long time and sometimes seems to last forever. Also, analysts and experts who have a positive attitude towards the stock market or a particular investment are indicated by "bulls" or bulls.