Stock Market Terms

Stock Market Terms

Mira, language is everything. Tú sabes! 😌☝🏽 And knowing how to talk about el stock market is important if you’re thinking of investing. Two terms that come up all the time are Bull Market

🐂 and Bear Market 🐻. According to Investopedia, these terms are used to describe how the stock market is doing in general.

 

A Bull Market 🐂 roars like a bull because it’s full of strength 💪. Share prices are rising, or are expected to rise, and the economy is solid. Investors trust what they see and usually expect shares to continue raising in value for a long period of time. So, this is el tiempo to take a chance and jump on to the bucking bull! 🙌🏽

 

A Bear Market 🐻 on the other hand is when prices are dropping, meaning stocks are going down in value, and there is overall negative investor sentiment 🚫. Bear markets may also accompany things like a recession. 😢👎🏽 So, it might be best to wait on buying any shares and let that little cub hibernate 💤. And if you have shares, you need to sell on time or you’ll lose money.

 

The time to invest is not a hard and fast rule. Also, each type of market is driven by the actions of the investors. In a Bull Market, there is strong demand with many investors wanting to buy and few people wanting to sell, therefore driving up prices ⬆️. Whereas in a Bear Market, more people are looking to sell than buy, so demand is lower than supply and prices drop ⬇️.

 

A veces, you may find a stock exception during a Bear Market y vice versa with a Bull Market. It’s also difficult to predict 🔮 precisely when trends will change, meaning when el Bear will wake up and overtake el Bull. So, knowing when exactly to buy or sell isn’t always super clear🌫. Research the stocks you’re interested in as much as possible before buying, including how they’ve performed in the past. Si tiene investor amig@s, you can ask their opinions on what they’re buying también 🙂. It’s ultimately up to you, though, to decide what to do with el dinero in your portfolio.

 

SOURCE:

https://www.investopedia.com/insights/digging-deeper-bull-and-bear-markets/ via @investopedia 

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