Bull Markets To Make Money With

By Mike Swanson

Bear market or bull market are terms often used in conjunction with financial markets. They describe the general trend of a market. Individual shares may go up or down during a day or even over a period of time, but the entire market also follows patterns. Many analysts have rules around what period they make market analysis over and the percentage rise or fall they consider indicates a market movement.

The term bull market is when the stock market is increasing in price. These increases usually begin when the market is at its lowest ebb. You can see with gold stocks over the past few years. When the cycle changes and things begin improving the investing market feels there are profits to be made.

When a bear markets occurs there is a period of constant stock price decline. The decline is not in one stock but in the bulk of the market.

One of the most memorable bear markets in recent history followed the stock market crash of 1929. In the three years that followed nearly 90% of stock values were wiped out. But obviously things did improve.

Most bear markets work with the pattern where there is a large initial decrease in values which eliminates many of the speculators from the market. Then there may be a short period when prices rise and investors think the worst is over. This is then followed by a period when there is simply a sustained decline.

But bull and bear markets are a cycle and one follows another. The problem is that there is no guarantee when the change will come or how long the patterns will last. It is easy to identify in retrospect, but much harder predicting the future.

Many investors forget markets are cyclical. It is possible to make money in both bull markets and bear markets but to do so requires some understanding of what sort of market you are investing in. - 23167

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