You’ve seen these terms explained before, right?
Well if you haven’t, now you have. This is how a “bull market” and a “bear market” are defined in the classic sense. I’m here today to shit all over that and explain the relevance in today’s markets and hopefully leave you with something new to consider.
Usually when we talk about a “bull market” or “being bullish”, we’re simply referring to rising prices; we expect price to rise or are describing a market that is in an upward trend. When using the terms “bear market” or “bearish”, we simply mean we expect prices to go down or are observing a down-trending market.
But in the definitions posted above, there are two pieces of additional information that are critical: time and emotion. Bull markets are characterized by their slow, steady climbs and are due to investor confidence and optimism. Bear markets, on the other hand, are nearly the opposite: they happen quickly and powerfully with fear, panic, or uncertainty to blame. Again, these are more of the classic definitions but that’s exactly why they can actually lead us to some pretty awesome underlying knowledge.
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