THE BEECHMONT CREST ONLINE GUIDE TO STOCKS AND INVESTING
Bull Market
- A strong (optimistic) market characterized by the widespread buying of securities.
- Stocks can achieve double-digit gains during bull markets.
- Many investors engage in a capital gain, or active investment strategy during bull markets.
Bear Market
- A weak (pessimistic) market.
- Investors can incur substantial losses in bear markets; but it is also possible to profit during these weak market phases.
- Many investors opt for a buy and hold, or passive investment strategy during bear markets.
Some factors that affect the stock market:
- The present rate of economic growth in the wider economy
- Consumer sentiment
- Political events
- Interest rates
- Unemployment numbers
- Commodity prices (oil, etc.)
If you watch the financial news on a regular basis, then you probably already have a sense of the factors that affect the stock market. For example, investors may take strong consumer confidence numbers as a sign that the economy is entering a strong period. On the other hand, a rise in unemployment claims may harbinger economic woes.