Our members receive the top research, stock picks and major company updates in the Canadian stock market. Discover why it's important to know the characteristics of the two types of market. Want to understand share market basics and learn how to become a trader? Read Bulls on Wall Street stock market blog for valuable trading news. Definition, Examples, Causes, Why Name. Definition: A bull market is when any asset class rises in value over an extended period. Confidence is high that prices of the asset will continue to grow. You can have a bull market in any asset, including stocks, bonds, gold and other commodities, even housing. However, most of the time you'll hear bull market referring to securities markets. Bull Market vs. Bear Market. A bull market always reaches a point where prices have gone up for so long that investors think they'll always go up. They enter a state of irrational exuberance, bidding prices way above any underlying value. That's an asset bubble. That phase can go on for quite a while. A market trend is a perceived tendency of financial markets to move in a particular. Oil speculators and a few major investment banks have suddenly turned bullish on crude prices, betting that the rally above $50 per barrel has more room to. The official site of the Chicago Bulls. Includes news, scores, schedules, statistics, photos and video. However, inevitably the bubble bursts, and prices crash. That can lead to a market correction, where prices just drop around 1. If prices continue to fall over an extended period, the asset class descends into a bear market. That's when investor confidence collapses, and they believe prices will just continue to fall. An actual bear market is when prices fall 2. Secular Bull Market. A secular bull market is a long- term, overarching trend that last 5 - 2. A bull market can have a correction, drop 1. However, a secular bull market can have smaller bear markets within it. These are called primary market trends. Most stock bear markets last 1. Stock Bull Market. Most of the time that you hear about a bull market, people are referring to the stock market. Usually all three major stock market indices - - the Dow Jones Industrial Average, the S& P 5. NASDAQ - - are rising at the same time. A stocks bull market generally correlates to a healthy economy. There are three drivers of a stock bull market: Top- line revenue: This should increase. That reflects demand for goods and services from consumers. In past recoveries, it was 7. Since 2. 00. 8, it's only grown 3. Profit: This is how much top revenue has generated in profit for the company. On average, for the past 2. In this recovery, it's 9. You might think it's good that companies can generate more profit from the same revenue dollar, but it's not. That's because the profit is at the expense of jobs, salary and investments in capital. P/E ratio: This is how much in additional stock price that investors are willing to pay for each dollar of earnings. Right now it's around 1. S& P 5. 00. That's about 9% higher than the average of the past five years. That was the end of a bull market in gold that started in 2. Before then, gold usually hovered around $3. For more, see Gold Price History. Bond Bull Market. For the past 3. 2 years, bonds have been in a bull market. That means that you wouldn't lose money buying a bond because their rates of return were always positive. However, that has come to an end. For more, see The Bull Market in Bonds Is Over. Market Bull. A market bull is a someone who thinks that prices are going up. That person is said to be bullish. A market bear is, of course, the opposite - - one who thinks prices are going down and is said to be bearish. Bull Market Meaning in History. Why use a bull or a bear to describe a market trend? It all started in the late 1. That's when people watched bulls (or bears), chained to a post, be attacked by dogs. For a detailed description, see The History of Bull Baiting. Surprisingly, bear baiting still occurs in South Carolina, although it's illegal in the other 4. See Humane Society video Bear Baiting. That's how bears and bulls first became linked in people's minds. Bears were used to describe market behavior in the 1. First, people often used the phrase, . In the stock market, short sellers did the same thing - - they sold shares of stock before they owned them. They bought the shares they day they were to deliver them. If share prices dropped, they would make a profit. It made sense in people's minds to use bulls to describe the opposite of bears - - those who bet prices would rise. Also, the Germanic root of the word . Two 1. 9th century artists made the terms even more popular. William Holbrook Beard painted the stock market crash of 1. Bull Market Definition . The length of that uptrend determines whether it is a secular or cyclical bull market. A secular bull market is characterized by above average stock market returns by the S& P 5. Periodic bear markets spring up within a secular bull market until the next cyclical bull market takes over and carries the market to even higher highs. A cyclical bull market refers to one that lasts a few months to a few years. Many factors can drive bull markets: strong economy, high consumer spending, low unemployment, post- war spending, high stock valuations and earnings, and all- around optimism and certainty. Consistent rise in stock prices. Healthy economy. Geographic and political certainty. For example, the U. S. It was a time when triple- digit profits from start- up Internet stocks were the norm. Investors actually shied away from steady double- digit index performers (S& P 5. Dow Jones Industrials) to participate in the unprecedented run- up in technology stocks. The second strongest bull market was brought on by election of Ronald Reagan in 1. From 1. 98. 2 to 1. Dow Jones Industrial Index (DJI) gained 2. Interestingly, there is a lot of speculation surrounding the current uptrend in the stock market that started in 2. Some say it is a cyclical bull market and is on the brink of a long- term trend reversal. Others say the last few years have been part of a bear market rally, and we may be coming into a new secular bull market. Regardless of how it’s labeled, be sure you monitor the trends and performance of your positions. Don’t let emotions dictate what or when you buy or sell. Following the heard, a term referring to a piling up of money in stocks regardless of fundamentals, can be dangerous. When stock markets are wrought with excess and overvaluations, bear markets can often be right around the corner. By Andy Crowder. The S& P 5. U. S. But the charge upward has slowed down dramatically over the past eight months. By Rick Pendergraft. The Chinese stock market has been on one of the greatest bull runs in history. But shares of search engine company Baidu are getting left in the dust. By Lawrence Meyers. Jeffrey Saut, the chief investment strategist at Raymond James, believes the S& P 5. Does he accurately see the future, or is he nuts? By Ian Wyatt. China’s stock market is in the midst of an incredible bull run. Over the last year, the Shanghai Composite Index is up an astounding 1. By Tony Daltorio. Despite being overlooked globally, the Korea Composite Stock Price Index is less than 2. May 2. 01. 1. More Recent Bull Markets Articles. View All Bull Markets Articles.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
January 2017
Categories |