Bull vs. Bear Markets
When a bull attacks, it thrusts its horns upward. When a bear attacks, it swipes its paws downward. Bull vs. bear markets are common terms in the investor world to describe the nature of financial markets and can help inform investors about market sentiment.
While there are no standard definitions for bull and bear markets, these terms are helpful in understanding market sentiment and making informed investment decisions. For instance, in a bull market, it is recommended to take advantage of rising prices by buying securities as early in the trend as possible and selling them when the price of the securities has reached its peak. This is often referred to as the concept of “Buy Low, Sell High.” Meanwhile, in a bear market, it is advised to make safer investments and turn to defensive stocks i.e. stocks that are minimally affected by market trends.