Question:
What’s a Bull and Bear Market? What’s the difference between the two? – Mario, Mexico City
Answer:
The Terms Bull Markets and Bear Markets are simply slang common to business acumen.
A Bull Market is a positive or optimistic view of the market. This is where the value of securities are rising or expected to rise and is opposite of a bear market. A Bear Market usually consists of a prolonged period of time where prices decline in the financial market place. A fall of 20% or more is a good sign your in a bear market.
Quick Tip: To help you visualize, think of a slow Bear ambling down and hill and a Bull bucking you up into the air (yee haa).
Bull Market = Optimistic/Up
Bear Market = Pessimistic/Down
Generally speaking, we want the market to go up. However, as taught in CMOE’s mini-mba program, money can be made in a bear market when prices are falling
Visualize!
Tags: Difference between Bull and Bear markets, money can be made in a bear market, Signs of bear markets, what is a bear market, What is a bull market
