What is a bull and bear case?
Bear Market. A bull market is a market that is on the rise and where the conditions of the economy are generally favorable. A bear market exists in an economy that is receding and where most stocks are declining in value. In the case of equity markets, a bull market denotes a rise in the prices of companies’ shares.
What is bull and bear strategy?
The bull spread is used to reduce the risk potential for a profit; a bear spread is used to try to reduce losses and maximize profit when prices are declining. There are two types of options used in bull and bear spreads—a call option, or the option to buy; and a put option, or an option to sell.
What does bull and bear market mean?
A bull market occurs when securities are on the rise, while a bear market occurs when securities fall for a sustained period of time. It’s important to understand the differences between bull and bear markets and how they impact your investment decisions.
What is bear phase?
A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20\% or more from recent highs amid widespread pessimism and negative investor sentiment. Bear markets also may accompany general economic downturns such as a recession.
Do you buy bearish or bullish?
Bullish traders will look to take long positions by either buying stocks, call options or any other financial instrument that will appreciate as prices go up. Bearish traders are looking to take short positions where they will profit if the market or stock goes down from its current price.
What is the meaning of bull Run?
A bull market, also known as a bull run, is a long, extended period in the market when stock prices are on the rise. The term is most often applied to the stock market, as measured by the major indexes: the S&P 500, the tech-heavy Nasdaq, and the Dow Jones Industrial Average.
What means bull market?
A bull market is the condition of a financial market in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities.
How do bull markets end?
When Stocks Officially Are in a Bull Market Rather, market trackers at S&P Dow Jones Indices define a bull market as a 20\% rise in the S&P 500 from its previous low. Note that by that measure, a bull market comes to an end when the S&P 500 falls 20\% from its peak.