{"id":179,"date":"2020-01-18T06:14:46","date_gmt":"2020-01-18T06:14:46","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=179"},"modified":"2020-01-18T06:14:48","modified_gmt":"2020-01-18T06:14:48","slug":"bull-market-vs-bear-market-and-their-comparative-traits","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/bull-market-vs-bear-market-and-their-comparative-traits\/","title":{"rendered":"Bull Market Vs Bear Market and their Comparative Traits"},"content":{"rendered":"
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It\u2019s pretty common to hear the word \u2018bull market\u2019 and \u2018bear\nmarket\u2019 used extensively in the market. It doesn\u2019t require you to be a market\nenthusiastic to hear these words. Even if you were to browse through the\nnewspaper or just go through the news, these words tend to pop up. But what\nexactly is the bull market or the bear market and how are these two different\nfrom each other. <\/p>\n\n\n\n

We here look into this aspect and let you know about it. <\/p>\n\n\n\n

What is\na Bull Market?<\/strong><\/h2>\n\n\n\n

The term bull market refers to the situation where the market\nis going up on an aggressive note. It can be deemed as the condition when the\nmarket is on the rise and is generally noted by the aspect of share prices\ngoing high in this period. During this period, the uptrend tends to continue\nand any potential investor hopes that such a trend will continue along. As a\nresult, investors and people alike tend to put their money into the market to\nhelp take advantage of the rising prices. \n<\/p>\n\n\n\n

On a larger note, it is deemed that during a bull market, the\neconomy of the nation is on the rise and major job opportunities are created. <\/p>\n\n\n\n

The reason behind Bull Market<\/strong><\/h3>\n\n\n\n

The major cause behind the bull market is the strong economy\nand the rising employment situation in the nation. The rising GDP and stable\npolitical stance also aid greatly in creating a bull market. The factors like\nindustry growth help back the stock prices to soar high and have a formidable\nstance.  Not only that, but companies\nalso post quarterly results showcasing the profit levels and that tends to\ncreate an impact on the stock levels of the company for time being. With a\nstrong economy and stable situation, the demand also increases as people have\nbetter purchasing power than they normally had creates a situation where the\nmarket uplifts. <\/p>\n\n\n\n

What is\na Bear Market?<\/strong><\/h2>\n\n\n\n

The term bear market is the contrasting opposite of the bull\nmarket and refers to the situation when the market is on the decline. This\nrefers to the condition when the market is in a downward trend and investors\nand people aside are scared of investing in the market. <\/p>\n\n\n\n

On a larger note, it is deemed that during a bear market the\neconomy is on the decline and the unemployment rates are high. During these\ntimes, people have low purchasing power due to high unemployment and cannot\ninvest in the market.  <\/p>\n\n\n\n

The cause behind Bear Market<\/strong><\/h3>\n\n\n\n

There are plenty of reasons behind the bear\nmarket but the major ones are the sluggish economy of the nation and the\nunemployment. The declining GDP impacts the nation as a whole and creates a\ndent in the stock market. It is also caused by the sector implosion that may\nput the industry at a risk and the change in taxation acts which can hamper the\neconomy severally. Add to it the reasons like political instability, it\u2019s a\ndefeating situation for the market. All these tend to create a final domino\neffect on the economy denting it. Also, another major factor that affects the\nstock prices of the company is the announcement of the quarterly report. If\nthere\u2019s a negative stance on the quarterly report that tends to impact the\nstock price of the company. <\/p>\n\n\n\n

The Characteristics of Bull and Bear Market and their Comparative\nTraits <\/strong><\/h2>\n\n\n\n

Although the bull and bear market are signified by the direction of the stock prices going up or down, there are a host of characteristics that define the bear and bull market. We here look at some of the major characteristics and their respective happenings in the bull and bear market to help shed light on the contrasting aspect of these two. Read along. <\/p>\n\n\n\n