August 30, 2014

Bull and Bear Markets Explained

Quite often, analysts will say we are either in a bull market or a bear market. But what does this exactly mean? These terms are used to describe whether the market is on a rising or falling trend.

When the market is viewed as having an upward trend, it is viewed as a bull market. When the trend is going downwards, we are said to be within a bear market.

Why? Because these are characteristics of their animal namesakes. A bull attacks by pushing its horns upwards, while a bear attacks its prey via taking big  downward swipes with its paws.