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Bull vs Bear – What you need to know

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𝗕𝘂𝗹𝗹 𝘃𝘀 𝗕𝗲𝗮𝗿 𝗠𝗮𝗿𝗸𝗲𝘁𝘀: 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘁𝗵𝗲𝘆 𝗮𝗻𝗱 𝘄𝗵𝘆 𝘁𝗵𝗲𝘆 𝗺𝗮𝘁𝘁𝗲𝗿 𝘁𝗼 𝘆𝗼𝘂 (𝗘𝘅𝗮𝗺𝗽𝗹𝗲𝘀 𝗜𝗻𝗰𝗹𝘂𝗱𝗲𝗱)

You might be wondering what’s going on with the stock markets and what the economy is doing.

As we move further into 2021 we are going to be seeing a lot more about Bull and Bear markets.

It’s important that you understand how it affects you. Simply doing your research by reading posts and articles like this you are already ahead of 98% of people out there when it comes to planning for your financial and business future.

𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝗮 𝗕𝘂𝗹𝗹 𝗼𝗿 𝗕𝗲𝗮𝗿 𝗠𝗮𝗿𝗸𝗲𝘁 𝗠𝗲𝗮𝗻 𝗳𝗼𝗿 𝘆𝗼𝘂?

Let’s take a deeper look at Bull vs Bear markets and the impact they are going to have on the world economy.

𝘽𝙪𝙡𝙡 𝙢𝙖𝙧𝙠𝙚𝙩: 𝙈𝙖𝙧𝙠𝙚𝙩 𝙞𝙨 𝙐𝙥

A good example of a bull market are the years during and following World War 2 (from the 1940s through the 1950s) were exemplary of a bull market as the U.S. economy and others prospered when millions of soldiers returned home.

Most remember this one between the 1980s-2000s.

A long bull market occurred from the early-1980s until the dot-com bubble bursting in the early-2000s. Over this time the market had an average market gain of nearly 600%.

Since 2017, the US has been going through a bull market. Jobs have been growing, the average returns on investments have been high, and everything was starting to bounce back from the effects of the housing market crash and the subsequent bear market that occurred in 2008ish.

Just as we have the Sun and the Moon, Light or Dark we have Bull Markets and Bear Markets which exist as opposites.

Now Let’s look at the bear market.

𝘽𝙚𝙖𝙧 𝙢𝙖𝙧𝙠𝙚𝙩: 𝙈𝙖𝙧𝙠𝙚𝙩 𝙞𝙨 𝘿𝙤𝙬𝙣

If the bull market describes growth and stability, the bear market represents the inverse: pessimism, loss on investments, and a usually regarded “bad” economy.

The best way to explain the bear market is that we witness an economic trend which is pessimistic.

Speaking generally, you find stagnation or a downward trend. There is low confidence in the economy and typically more people are selling than buying.

Bear markets are also a good indicator of a recession which is a long term period of negative growth.

Investors who are pessimistic about the market trends are often referred to as being “bearish”

Another indicator of a bear market is low employment rates, as companies experience business loss this directly relates to loss of work. The current times we are in have added a large degree of challenges to businesses keeping the doors open.

Because of this, fewer people are willing to buy stock. This directly results in prices of shares going down and then the market falters.

A very “bearish move” is when investors sell shares they don’t own so they can buy the shares at a lower price in the future.

Bear markets can often seem very bad and you need to be aware of the impacts on your finances and business growth. Often, they do not last long. However this time it could be different.

Understanding the markets allows you to invest wisely. For example, would you rather be buying a house when the prices are high or low?

Focus on your long-term plan… Your Success Depends on it!

Market trends are always changing, so it’s important that you stay informed and can plan for now and the future. It’s easy to say well I don’t invest in stocks so the market does not affect me. WRONG.

Everything is interconnected from lending, supply chains, tourism and most things are influenced by what’s happening in bear and bull markets.

𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳:

I need to state the obvious, the above is just a basic guide on the differences based on my experiences and knowledge. Regarding your financial position and investing you need to seek advice from trained financial advisors.

Any questions feel free to get in contact.