Bull & Bear Markets

I’m sure you heard about this term frequently. But hey, when are we really in a Bear or Bull market?

Bear Market

  • A condition whereby the market falls by 20% or more
  • Negative sentiments in the market
  • Selling continues over a period of roughly 2 months and longer

Some factors: GDP down, high unemployment rate, economy bad, looming recession

Note: Extremely difficult to time the market bottom.

Bull Market (The opposite.. duh)

  • Market rallies by 20% or more
  • Positive sentiments in the market (Eg, your uncles aunties all talking about what stocks to buy)
  • Stock prices keep going upwards!

Some factors: GDP growing, low unemployment rate