Bull and Bear Markets. What Are the Differences?

barbara bethard By barbara bethard, 2nd Aug 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/3lo12k9n/
Posted in Wikinut>Money>Economics

This is a defintion of what constitutes a bullish compared to a bearish market

Definitions f the Two Words

Bear Market: during the 18th century, fur traders would flood the market with bearskins in the expectation that prices would rise. They did not. The flooded market caused prices to fall and a recession or a depression, high inflation and high unemployment can occur if it continues over a longer period of time

Bull Market: The longest bull market in history, that of fifteen years, ended in the year 2000. It was a period of extended high employment, rising stock prices and high securities prices. It came to mean the public was joyous and commodities were strong.

Regardless of the definitions themselves, the truth is harder to understand than just times of highs and lows. It is money and who is buying and selling and for how much. It is items of valued being traded, bought and sold in a virtual box, without any of the goods themselves actually being seen.

It appears, to a novice, that it is like a pendulum with market highs and lows, trends, market tops and bottoms. It can only go so far in one direction before it will go off in the other direction. It would seem prudent to avoid anything to do with this type of investment. You could be caught at the start of your retirement and the market takes a bottom dive. Then you would lose all of the "virtual wealth" you had just a few hours prior.

On the Other Hand
There is a need for trading and buying and selling of commodities. It is what gets the people of the world the things they need to survive. The world has gone so long with this type of trading it does not seem likely to go back to trading face to face in the public market. Although, yes, it is still true this type of trading is being done all over the world even today. However, the most money, the monies that moves the world as we know it, that is done in stock exchanges all over the world.

But is there a way to keep the stock market from fluctuating so madly? Should a limit be placed on the amount of monies to exchange hands? Is this such a naive statement you will stop reading right now?

The stock market has many different terms for what occurs in the market from three types of trading and four different ways to predict what will happen next. It could be a secular market that lasts from 5-25 years with a stead y rise in prices. (This makes sense to me, slow and steady like mutual funds) Alternatively, it could be a market bottom where it is predicted the only way is up so it will turn from a bear to a bullish market shortly

All these terms for clouding the issue of you sell, I buy, I then sell it to someone else at a higher rate, who then continues to do the same thing all over again and again.

I think the world (GASP) would be better off without a stock market.

Period.

"There. I've said my piece and I've counted to three"

Tags

Aggressive Or Conservative Tactics, Economics, Stock Market

Meet the author

author avatar barbara bethard
I am a wife to my best friend, my David and we have two adults in training we love dearly.
I have always loved to write and share what bit of knowledge I collect with others. I plan to write on things I love and know such as healthcare, philosophy,...(more)

Share this page

moderator johnnydod moderated this page.
If you have any complaints about this content, please let us know

Comments

author avatar Songbird B
4th Aug 2011 (#)

An interesting and insightful read, Barbara, thank you for sharing this..

Reply to this comment

author avatar barbara bethard
5th Aug 2011 (#)

it took a bit to understand it even after I researched it but I was determined to grasp the concept!!

Reply to this comment

author avatar barbara bethard
5th Aug 2011 (#)

this is so strange...Im sure I hit add then my comment is lost ???
anyway thank you SongBird..even after research I still had to write it out several times to get the idea of this...but worth it!

Reply to this comment

Add a comment
Username
Can't login?
Password