You may have heard of bull and bear markets – but are you aware of how you should recalibrate your investment strategy to stay on top of the changing trend?
First let’s take a moment to delve into the trivia behind the terms. Why are they named after these two animals? It has been thought that the term “bear” (for down markets) and “bull” (for up markets) are derived from the way in which each animal attacks its opponents. We all know that a bull will thrust its horns up into the air, while a bear will swipe down with its strong paws. These actions were then related metaphorically to the movement of a market – upwards and downward.1
What many are also not aware of, is that both markets can present wealth-building opportunities. The key to generating profits is to spot the market’s direction early enough, and be timely about using strategies that fit the conditions of these markets.
Bull and bear markets often coincide with the economic cycle, which consists of four phases: expansion, peak, contraction, and trough (of which I have covered on my earlier articles). So if you are ready to learn more about how you can ride the bull and tame the bear, I will be happy to share some insights with you.
Sources:
1https://www.investopedia.com/terms/b/bullmarket.asp#:~:text=The%20terms%20%22bear%22%20(for,the%20movement%20of%20a%20market
2https://www.investor.gov/introduction-investing/investing-basics/glossary/bull-market
3https://www.investor.gov/introduction-investing/investing-basics/glossary/bear-market
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