Bear vs bull market: How to tell the difference
Another term you may not be aware of that analysts and traders frequently use is “correction”. A correction is defined as being a 10% move in the opposite direction of the prevailing trend. In other words, a 10% decline in a bull market or a 10% rally in a bear market, although it’s more often used when referencing the former. Which of these is most important for your financial advisor to have? Because the market’s behavior is impacted and determined by how individuals perceive and react to its behavior, investor psychology and sentiment affect whether the market will rise or fall. Stock market performance and investor psychology are mutually dependent. In a bull market, investors willingly participate in the hope of obtaining a profit. In a bull market, there is strong demand and weak...
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