The price chart implies the scenario of the bear and bull stock market. The bulls are known as buyers and the bears are known as sellers. The article below furnishes information about the varied aspects of the stock market, where bulls as well as the bears are the driving force in the markets.
Price of stocks are manifested in the trends of the financial markets. These trends are reflected in what is known as a price chart. The main objective of viewing a price chart is to assist the investors in deciding about trading as well as investment opportunities.
In order that the price chart manifests the current trends, there are few factors, which influence their (parameters in the price chart) movement. These factors are the sellers as well as the buyers of the stock market. Bull and bear stock market comprises the buyers, who are referred to as the bulls and the sellers who are referred to as the sellers.
Bear and bull stock market cannot be divorced from different sectors of the financial markets or securities belonging to these sectors.
Investor sentiment in a bull stock market:
A bull market indicates that investor confidence is high. It also implies that investors will tend to buy more with the hope that they would make some capital gain. The bulls or the buyers are constantly on the look put for increasing revenues from different sources by making different investments,
The longest bull market:
It may be mentioned here that the period when the stock market had reached its zenith was during the 1990s. The bull market during this period lasted for a prolonged period. This was true not only in India but also in United States of America and the other countries globally.
Investor sentiment in a bear stock market:
In case of a bear stock market, the reverse is true. That is, the investors will show a pessimistic attitude towards their investments. The bears or the sellers will have a tendency to sell off their stocks to compensate for the losses or to prevent the value of stocks from falling any further. In general, a bear market does not occur due to a small drop in prices over a short time period. In order that a stock market can be called a bear stock market, the price of the stocks have to be falling over a considerable time period. It is said that a stock market can be referred to as a bear market if there is a fall in price of stocks by a minimum 20% in any �key stock market index�. The drop has to be from a considerable height and the graph should be declining for a period of at least 60 days.
Longest bear stock market- a curtain raiser to Great Depression: Studies suggest that the longest bear market has been during the period 1930-1932. This was a prelude to the Great Depression. Another bear market followed during the period 1967 to 1983, which was marked by the energy crisis (1970s). Surge of unemployment showed up in the 1980s.
Land of opportunities- United States of America:
Prior to the United States Subprime mortgage crisis, the economy of USA had a bullish market since immemorial, characterized by a bullish market down the years. For reasons, similar US is referred to as the Land of Opportunities.