What's the deal with Bulls and Bears?

We all would surely come across the words ‘Bull vs. Bear’ while talking about the stock market condition. The term has larger meaning though it may sound simple. Knowing the stock market condition basically means whether the market is appreciating, depreciating or stagnant in its value.

So what’s the deal with bulls and bears?

Bulls and Bears, the animals, are actually fierce opponents and this also matched perfectly to describe the stock market condition. Bull here represents appreciation or upward movement of market values resembling the characteristic of bull which drive its horn up in the air. On the other hand, bear indicates depreciation or downward movement of market values which is connected towards the character of bull swiping its paws downwards to its prey.

How to determine whether the market is Bullish / Bearish?

BULLISH – is where the market rise at least 20%, which in turn increase the confidence among the investors. Demand keeps increasing pushing down the supply. There prevails a market sentiment that rise in demand gives good return and show a positive market sign. Greed is associated with bullish market where the investors tend to buy more products from stock market.

BEARISH – is where the market falls about 20% pulling down the confidence of the investors where a negative sign for investment is attached. Fear of risk makes the investors to sell the stocks which increase the supply and decrease the demand in the market. Investment becomes less because the investors thinks that the market value will further fall down so has to avoid huge risk they rush to sell the products in the market.

It is not necessary that the market should be a bull or bear, sometimes it may also be stagnant/ flat where the market tends to be stable showing no movement at all. Investors make decisions keeping in mind both the current market and economic conditions. At the same time, however, investors should have an understanding of long-term market trends from a historical perspective. Because both bear and bull markets will have a large influence over their investments, do take the time to determine what the market is doing when you are making an investment decision.

                                                                                                                           - Hamsaveni

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