What do the terms "Bull"
and "Bear" mean?
A "Bull" and "Bear" are often used to refer to the stock
market and the term "Bull market" is used when most stocks
are generally rising in price over a period of time. A bull
market is when the country's economy is healthy; interest
rates are usually low which encourages people and companies
to borrow because money is "cheap".
Because of this environment, people are generally spending
and buying more of company's products and services and thus
the company's sales and profits are high which means stock
prices go up in value.
The term "Bear market" is used when most stock prices are
falling over a period of time and this happens when the country's
economy is unhealthy, interest rates are high, which does
not encourage people and companies to borrow. Because of this
environment, companies and individuals are usually reluctant
to spend money and thus company's sales and profits suffer,
which means stock prices go down in value, it generally last
between nine and eighteen months.
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Summary
The good news is that Because Bull's last longer, the odds
are more stacked in your favour to make money over the long
term.
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