What is a Bull Market?
You often hear of the market being bullish or bearish. But what is a bull market?The term Bull Market is most frequently used in respect of stock markets.
What is a Bull Market?
A bull market is one in which prices of securities are rising or are expected to rise.
It is a prolonged period where the security prices rise faster than their historical average.
Bull market is based on the investor’s belief that the upward trend of securities will continue in the long term.
Bull Market indicates that the economy of the country is strong and also suggests good level of employment.
Why Bull markets happen?
Causes: It can happen as a result of
• Economic recovery
• Economic boom,
• Investor psychology
• Positive Political event
What things an Investor should do in a Bull Market? Investors must take advantage of the rising prices in the bull market and buy securities early, when prices reach their peak sell it i.e. book profits.
Example of Bull Market:
There had been a number of bull markets. There had been the rally in the Sensex, where it has run from 7,000 in June of 2005 to over 21,000 in early 2008.