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Showing posts from April, 2018

What is the meaning of bear market and how to identify it ?

What is the meaning of bear market and how to identify it ? A bear market refers to a period of months or years during which prices of some listed securities are consistently falling. The condition of bear market is just opposite of bull market , in which prices of securities rise on consistent basis.The terms bull and bear are used to describe the present behavior of stock market, i.e whether the value of stocks are appreciating or depreciating.In bear market there is lack of confidence in the market, often people wait here for bulls to drive the prices up again. How a bear market works is discussed below : To identify this having a good knowledge of current market conditions is must. Often when market is bearish at least 80% of all stocks price start falling or major decline in the indexes can be witnessed. There are several factors which causes such movements in the market like economic cycles, individual sentiments of traders and investors . A wea...