Jump to navigation Jump to search A market trend is a perceived tendency of financial markets to move in a particular direction over time. A trend can only be determined in hindsight, since at any time prices in the future are not known. The terms “bull market” and “bear market” describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors bull vs bear market securities. A secular market trend is a long-term trend that lasts 5 to 25 years and consists of a series of primary trends.
In a secular bull market the prevailing trend is “bullish” or upward-moving. 2002 triggered by the dot-com bubble. In a secular bear market, the prevailing trend is “bearish” or downward-moving. An example of a secular bear market occurred in gold between January 1980 to June 1999, culminating with the Brown Bottom. Statues of the two symbolic beasts of finance, the bear and the bull, in front of the Frankfurt Stock Exchange. A 1901 cartoon depicting financier J. A bull market is a period of generally rising prices.
The start of a bull market is marked by widespread pessimism. This point is when the “crowd” is the most “bearish”. The feeling of despondency changes to hope, “optimism”, and eventually euphoria, as the bull runs its course. 1926 to 2014 found that a typical bull market “lasted 8.
India’s Bombay Stock Exchange Index, BSE SENSEX, had a major bull market trend for about five years from April 2003 to January 2008 as it increased from 2,900 points to 21,000 points, more than a 6-fold rise in 5 years. A bear market is a general decline in the stock market over a period of time. It is a transition from high investor optimism to widespread investor fear and pessimism. Once a market enters correction or bear market territory, it isn’t considered to have exited that territory until a new high is reached. 1926 to 2014 found that a typical bear market “lasted 1. Dow Jones Industrial Average’s market capitalization by July 1932, marking the start of the Great Depression.
It is retroactively defined as market participants are not aware of it as it happens. A decline then follows, usually gradually at first and later with more rapidity. A recent peak for the broad U. P 500 index closed at 1,565 and the Nasdaq at 2861.