What is Bullish Stock Market / Bearish Stock Market?

What is a 'Bull Market'

A bull market is a financial group of securities in which prices are rising or are expected to rise. The term "bull market" is most often to refer to the stock exchange but can be applied to anything that is traded, such as bond, monies and commodity.

THE 'Bull Market'

Bullish trades are characterized by optimism, confidence and expecting that strong results should continue. Being difficult to predict consistently when trends in the market are going change. Difficulty is that psychological effects and speculation may sometimes play a large role in the markets.

Bull vs. Bear Markets

The yin of a bull trader is a bear trader, which is characterized by falling prices and typically shrouded in a lack of hope or confidence in the future. The use of "bull" and "bear"  term to describe trade markets comes from the way the animals attack their opponents. A Bull thrusts its horns up into the air, while a Bear swipes its paws downward. The actions are metaphors for the movement of a stock market. When the trend is up, it's a bullish market. When trend is down, its referred to as a Bearish.

Bull & Bear markets often occur simultaneously with the economic cycle, which consists of 4 phases: expansion, peak, contraction and Low point. The onset of a bull exchange is often a leading indicator of economic upward movement. Since public emotions towards future economic conditions drives prices, the market often goes upward even before thorough economic measures, such as GDP growth, begin to tick up. Same way bear markets usually set in before economic shrinkage takes hold. A observation back at a typical recession reveals, falling stock market several months ahead of GDP decline.

Bull Market Example

The most Plentiful bull market in recent American history began at the end of the persistent high inflation combined with high unemployment and stagnant demand in a country's economy era in 1982 and ended during the dotcom bust in 2000. During this secular bull market a term that denotes a bull market lasting many years, Dow Jones Industrial Average (DJIA) averaged 16.8% annual returns. The NASDAQ, a tech-heavy exchange, increased its value five-fold between 1995 and 2000, rising from 1,000 to over 5,000.

A protracted bear market followed the 1982-2000 bull market. From 2000 to 2009, the market struggled to establish footing and delivered average annual returns of -6.2%.

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