Skip to main content

Bull Market and Bear Market

 

Bull Market and Bear Market

Bull Market

  • A bull market is a period of several months or even years during which stock prices are consistently rising or are expected to rise. Example of a bull market is during the period of December 2011 and March 2015 in Indian stock markets where Sensex surged up by more than 98%.
  • The term bull market is usually used in reference to the stock market and can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities.
  • In the financial world, the bull market is used to describe the economic environment of a country that is growing and optimistic.
  • This is the reason why you hear about investors who are confident in the stock market being described as being bullish.

Indicators of a Bull Market

  • Gross Domestic Product (GDP) of the Country Increases
  • Rise in Stock Prices
  •  Employment Rate in the Country Increases

Bear Market

  • A bear market is the opposite condition of the bull market.
  • A bear market is a period of several months or even years during which stock prices are consistently declining or are expected to decline.The most recent example from Indian stock market would be between the period of March 2015 and February 2016 where Sensex dropped by more than 23%.
  • It describes an economic trend where there is stagnation or a downward trend in the economy, people’s confidence in the economy is low, and more people are selling stock than buying.
  • A bear market is a good indicator of a recession i.e. a long-term period of negative growth.

Indicators of a Bear Market

  • Unemployment Rate Is High 
  • Fall in Stock Prices

Circuit Breakers

  • Circuit breakers are triggered to prevent markets from crashing which happens when market participants start to panic induced by fears that their stocks are overvalued and decide to sell their stocks.
Labels:

Comments

Post a Comment

Popular posts from this blog

Major Literary Works & Authors in Gupta Period

  Major Literary Works & Authors in Gupta Period The Gupta period was known as the Golden period of India in cultural development. It is considered as the one of the supreme and most outstanding times. Gupta Kings patronized the Sanskrit literature. They generously helped Sanskrit scholars and poets. Eventually Sanskrit language became the language of cultured and educated people. Kalidasa He was a Classical Sanskrit writer, extensively considered as the greatest poet and dramatist of Gupta Period. The six major works of Kalidasa are Abhijnanashakuntala Vikramorvashi Malavikagnimitra The epic poems Raghuvamsha Kumarasambhava Meghaduta Vishakhadatta The famous plays of Vishakhadatta are Mudrarakṣhasa Mudrarakshasha means “Ring of the Demon” and it recites the ascent of Chandragupta Maurya to throne. Shudraka He is a king as well as poet The famous three Sanskrit plays contributed by him are Mrichchhakatika (The Little Clay Cart) Vinavasavadatta A bhana (short one-act monologue) ...
Post a Comment
Read more

15 July – Current Affairs

15 July – Current Affairs National Dairy Development Board (NDDB) : Ø The Ministry of Animal Husbandry, Dairying and Fisheries recently told the Parliament that it has advised NDDB to “extend the provisions of the RTI Act, 2005 to its subsidiary companies including NDDB Dairy Services.” Ø Type: An Institution of National Importance set up by an Act of Parliament of India. Ø History: It was founded by Dr. Verghese Kurien in 1965. Ø Headquarters: Anand, Gujarat. Ø NDDB's subsidiaries include: IDMC Limited-Anand, Mother Dairy, Delhi, NDDB Dairy Services, Delhi and Indian Immunologicals Ltd, Hyderabad. World Youth Skill Day : Ø The fourth anniversary of the Skill India Mission is being observed on July 15, 2019 o the occassion of World Youth Skills Day. Ø The United Nations, at its General Assembly in November 2014, declared 15 July as World Youth Skills Day.  Ø Traditionally organized by the Permanent Missions of Portugal and Sri Lanka, together w...
1 comment
Read more

CASE STUDY PART-2

CASE STUDY-1 Mihir is a new Panchayat secretary. Within few days he got a circular which said that he should soon conduct Grama Sabha to finalize the action plan of MGNREGA. Action plan contains the list of works to be undertaken in the villages and their estimated expenditures. This should be decided in the Grama Sabha and the decision of Gram Sabha is immutable. The Gram Sabha was held and chairman, all elected members, officer in-charge,engineer,  people from villages debated and finally listed important works to be undertaken and the estimated expenditure was decided there itself. Next, this plan had to be approved in the Panchayat meeting and sent to Tehsil for further approval for sanction of funds. The chairman of Panchayat, who was also a class-I contractor, met Mihir and asked him to manipulate the funds estimates. Even few members who themselves were small time contractors and who had previously used machines in MGNREGA scheme to finish works and draw money, jo...
Post a Comment
Read more