Stock markets move Up and DOWN in recurring cycles. A prolonged rise in stock prices is known as a Bull Run ( bull Market) while a consistent decline is called a bear market or Bear phase.
These are different from short-lived upward or downward “corrections” in stock prices. Typically, a Bull Run or a bear market means at least a 20% change in the index value.
Nobody can accurately predict stock market movements, but they can be explained. Here’s what moves the stock markets.
Bullishness in the markets can be the result of an economic boom which in turn fuels optimism among investors. The Indian markets witnessed the longest bull run during the past five years.
Indicators of a Bull Run :
1️⃣ Rising corporate earnings
2️⃣ Low inflation
3️⃣ Low interest rates
4️⃣ High fund flows and Liquidity
5️⃣ Increased Investor Interest
6️⃣ Hot & Smart Money comes in.
Bear phases occur in times of an economic Downturn and when there is all-round pessimism. Unlike a correction, a bear market is marked by a consistent fall in stock prices over a long period of time.
Indicators of a Bear Phase :
1️⃣ Falling corporate Earnings
2️⃣ Rising Inflation
3️⃣ High or Rising Interest rates
4️⃣ High fund outflows or Huge Selling by FII and Liquidity crunch
5️⃣ Low Investor Interest
Disc- All views expressed are personal and for study & Educational purpose only. Consult your financial advisor before investing or taking any position based on above article.