We often hear these two terms: Bull Market and Bear Market. What they are? Why they are called so?
According to Investopedia, a bull market is a market that is on the rise and where the condition of the economy is generally favorable. There isn’t any official ‘definition’ that I can find, but generally, people call a market bull market, if it has risen 20% from previous market lows. In the bull market, investors are generally very optimistic about the growth of the market. People also call them ‘bullish’.
There are many explanations for how the name ‘bull’ is derived. One common explanation is how the animal attacks its opponents. As you can imagine, a bull usually thrusts its horns up into the air. That gives the impression that it is ‘going up’.
On the contrary, a bear market is a market that is on the decline, and the condition of the economy is receding. Generally bear market refers to a market where it has fallen 20% from recent highs, and under a bear market investors are usually pessimistic about the economy and worry it will contract, and face recession or even depression. People also call them ‘bearish’.
Bears attack opponents with their paws, and usually, they will swipe down. That gives the impression of ‘going down’.
So, with this, do you think we are already in a bull market? 😉
根据 Investopedia 的解释，牛市是一个正在上升的市场，经济状况总体上是有利的。我找不到任何官方的“定义”，但通常如果市场从之前的低点上涨了 20%，人们称市场为牛市。在牛市中，投资者普遍对市场的增长非常乐观。人们也称它们为“看涨 bullish”。
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