What is a Bear Market & What is a Bull Market?
What is a Bear Market & What is a Bull Market?
A bear market occurs when the prices of investments in the stock market are in a continual decline and investor confidence is extremely low. Investors often sell off a lot of their investments during bear markets at prices lower than they purchased them for, violating the #1 Rule in Investing: “Buy low, and sell high.” Although figures vary, a downturn of 20% or more over a 2-month period is often considered entry into a bear market.
A bull market occurs when the prices of investments in the stock market are rising and are expected to continue to rise for an extended period of time. These time periods are often characterized by over-confidence and the feeling that “it’s different this time”. Recall, for example, when in 1998/1999 it was widely thought that any “dot com” would be a profitable company because the web had “changed everything”. Yes, the Internet changed a lot of things about the experience of our everyday lives, but even dot com companies are still subject to potential losses.
Related Articles
An easy way to tell is by looking at your statement. If it states “Surrender Value,” “Surrender Charge,” “Premiums,” “Guaranteed Income,” or “Guaranteed Rate”. Hilary Hendershott does not sell annuities...
Kids learn so much from the actions of those around them. When you are open with your kids about not only what you’re doing well, but also where you would like to improve, kids learn. We encourage you to...
If your goal is to grow your assets, it would likely be best to reinvest the dividends and capital gains. It’s a great way to increase your position in the investment without paying commissions. Those shares will...
An index fund is a mutual fund. The underlying investments are built/purchased/structured to match a market index. These types of mutual funds are designed to have fewer trades which equates to less...
To be invested in a range or a variety of companies, industries, countries, and types of investments. To not put all of your eggs in one basket so to speak. The most basic recommendation for diversification...
Risk is the possibility of a loss. There are quite a few types of risk when it comes to investing. The level of risk you are willing and able to take is different from the next person. However when it comes to...
If more than 10% of your assets for a specific goal, like retirement, are in one stock or company, that would be considered having a concentrated position. Having concentration positions in your account...
If more than 10% of your assets for a specific goal, like retirement, are in one stock or company, that would be considered having a concentrated position. Having concentration positions in your account...
Hedge Funds, like mutual funds, are pools of investments. They can invest in anything, private corporations, public corporations, real estate, currencies, the list goes on. Only Accredited Investors...
A mutual fund is an investment vehicle where you and others pool your money to purchase other investments, like stocks, bonds, and even other mutual funds. Mutual funds can have 20 to a few...