Bull vs Bear Markets

The terminologies in the investment market that we hear the most often. “Oh the market is bullish it’s on a rise”. “Bearish market, it’s going to fall”. These statements are fine, but what is the exact meaning of all of this?

This question bugs a lot of beginner investors and even some experienced ones. Shedding light on this topic and helping gain a substantial understanding of it is supremely important; as these terms define the outlook of the market from the investor perspective.

Let us help decode the jargon a bit more:

A bull market means a sustained growth trajectory in the market, whereas a bear market is the exact opposite. They are called bull and bear because of how the animals that these phenomena are named for, attack their prey. A bull thrusts its horns upwards whereas a bear swipes down.

Bull markets are indicators of the following:

• A robust market
• High investor confidence
• Growth across sectors and industries
• Flourishing economy
• High production.

So, you must have guessed what the Bearish market stands for:

• A slowing down market
• Low investor confidence
• Decline in growth
• Recession in the economy
• Low production

Even though these are indicators, they help a substantial amount in the planning of one’s financial plan for the long term and how they would benefit from their investments made today. The transitions can be hard to notice and require a keen eye and a sharp understanding of the market.

The strategies may be different for both a bullish and a bearish market but are of significance to an investor. Therefore making them crucial directionally.

Getting into the nitty-gritty and understanding the know-how of how this works requires years of learning and education in the financial sense. Achieving that individually is a mean feat and not feasible for all. Therefore, reliance on experts is something that we strongly advise. And who better than the moolaah experts to guide you and your path to a wealthier future?